You’ve no doubt been following the drama surrounding Greece and the European Union. There is no new story here; we’ve written about it before. One day it seems like a promising deal will be made, the next it seems like the house of cards will unravel with a “Grexit.” The chart above shows a recent history of Greece’s 10-year bond yield.
As a savvy investor, however, you’re more interested in what this means for you. Perhaps you’re looking for a way to take advantage of volatility overseas. What vehicles are available for this sort of thing? You could invest directly in the Greek stock market. But with the Athens Composite Index down nearly 50% from its highs of 2014, maybe not. You could invest in a broader European stock index like the Euro Stoxx.
The Euro Stoxx 50 Index is a composite of Europe’s Blue Chip stocks. Some names you may recognize are BMW, L’Oreal and Deutsche Bank. In fact, there is a futures contract based on this index facilitated by EUREX. Each point represents €10. The September futures contract is roughly valued at 3650 or €36,500. And according to today’s exchange rate, that means approximately $40,150. The margin required to hold one contract overnight is €2604.
On the other hand, trading futures involves substantial risk and a lot of time for research. It can be a great way to diversify your portfolio, but the leverage inherent in futures can work for or against you. Perhaps a better solution is to have a professional manage your account – and one that has exposure to the European market place.
With that in mind, let me introduce you to Goldenwise Capital Management. They trade a variety of futures and options contracts with an emphasis on volatility and even some foreign contracts like Euro Stoxx futures and Asian stock indices. In our opinion, they are a great emerging CTA for investors that meet the definition of QEP. Here is the skinny:
Goldenwise Capital Management:
- Minimum Investment = $200,000 (will take 50% notional funds)
- Assets Under Management = approx $45MM
- Worst Historical Drawdown = -10.69% (09/2014 – 10/2014)
- Annualized Standard Deviation = 19.32%
- Compounded Annualized ROR (CAROR) = 49.70%
- 36 Month CALMAR Ratio = 1.13
There is no guarantee of profit regardless of who is managing your account.
Trading is tough. If you believe you meet the criteria of a QEP, talk to your BROKER about Goldenwise. They may be able to add the diversification you need while taking advantage of unique markets and opportunities often neglected by other CTAs.
Disclaimer: Trading futures, options on futures, retail off-exchange foreign currency transactions (“Forex”), investing in managed futures and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. This website contains information obtained from sources believed to be reliable, but such information has not been independently verified and its accuracy is not guaranteed by Foremost Trading. Past performance is not necessarily indicative of future results. Any mention of performance in any context whether actual or hypothetical is no guarantee of future results. Foremost Trading became a registered ‘dba’ of RCM Alternatives in July of 2020. Please see full disclaimer here: https://www.rcmalternatives.com/disclaimer/