Global Macro Strategy
AXP Advisors Global Macro Strategy
Our comprehensive investment strategy is designed to capitalize on global economic trends while maintaining a balanced and risk-managed approach. We prioritize diversification across asset classes, sectors, and geographies to mitigate volatility and capture growth opportunities. Trading is exclusively on liquid and stringently regulated stock market instruments, with an emphasis on derivatives such as futures and options. The strategy leverages long-term global macro-themed positions, as well as nimble, short-term technical analysis-driven trades. The Fund Manager engages in high-conviction trading, where investment ideas are conceived by melding fundamental macro and technical analyses, including, but not limited to, pattern recognition, volatility analysis, volume assessment, and time cycles. The fund's goal is to achieve 25% annualized returns.
Investment Objectives and Goals
- Balanced Portfolio
We aim to construct a balanced portfolio diversified across various asset classes, sectors, and geographies to mitigate risk and withstand market volatility while capitalizing on growth opportunities.
- Risk Management
Effective risk management is crucial, including monitoring trends, adjusting portfolios, hedging, and using derivatives to protect against market declines, interest rate changes, and currency fluctuations.
- Quality Investments
We focus on selecting quality investments with strong balance sheets, stable earnings, and good governance, as these are generally more resilient in turbulent markets.
Investment Approach and Process
Fundamental Analysis
Fundamental analysis is the cornerstone for selecting and holding core equity positions, analyzing financial statements, industry trends, and economic indicators to make informed investment decisions.
Tactical Allocation
We utilize technical analysis and seasonal factors to optimize entry and exit points for equity and non-equity positions, adjusting allocations dynamically based on short to medium-term market trends.
Option Trading
We employ short-dated options on stocks and ETFs to enhance returns and manage risk, utilizing covered calls to generate income from existing holdings and cash-
covered puts for entering new positions at favourable prices.
Futures
We use futures contracts to gain efficient and cost-effective exposure to a variety of asset classes, including equity indexes, interest rates, currencies, commodities like gold, and cryptocurrencies such as Bitcoin. Futures allow us to take both
hedging and speculative positions, helping us manage risk and capitalize on market opportunities across different sectors and asset types.
Risk Management
To effectively manage the risks associated with futures trading, we limit our exposure to 10% of the margin to equity ratio. This conservative approach helps ensure that
our overall portfolio remains well-diversified and resilient, even in volatile market conditions.
Diversification
Benefits By incorporating futures contracts into our investment strategy, we can further diversify our portfolio and reduce its overall volatility. Futures provide access to a wide range of asset classes that may have low or negative correlations with our existing equity and fixed-income holdings, allowing us to better weather market fluctuations.
Global Macro Strategy Performance
2023 Cumulative Return : +63.64% / 2024 Cumulative Return : +30.19%.