Strategies

Equity Trend Program

Active directional long/short equity
Trading since January 2007
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Important information

Due to applicable laws on the marketing of financial products and services, Transtrend’s products and services may not be available in certain countries and/or for certain types of investors.

The information on this section of the website is only intended for professional investors (within the meaning of applicable local legislation) located and/or established in European Union member states to which Transtrend has passported the offering of its product or services. If you do not satisfy the above criteria or if you are unsure if you satisfy them, please do not proceed and contact us to discuss possibilities.

This website is for informational purposes only and does not constitute a solicitation to open an account advised by Transtrend or invest in a fund for which Transtrend acts as manager.

THIS WEBSITE DOES NOT CONSTITUTE AN OFFER TO FURNISH INVESTMENT ADVISORY SERVICES BY TRANSTREND IN THE UNITED STATES OR TO ANY UNITED STATES PERSON. TRANSTREND'S INVESTMENT ADVISORY SERVICES ARE NOT OFFERED IN THE UNITED STATES OR TO ANY UNITED STATES PERSON.

Performance update

  • ETP (EUR) Composite

    Inception date: 01 Jan 2007

  • 19 Oct 2017

    0.03%

    MONTH TO DATE

    2.35%

  • YEAR TO DATE

    1.38%

    INCEPTION TO DATE

    2.99% p/a

These data should be viewed in conjunction with the explanatory notes, which are an integral part of these performance data. THE VALUE OF YOUR INVESTMENT CAN FLUCTUATE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.



Summary

  • 10+ years track record providing attractive risk-adjusted returns with low correlation to equities
  • Systematic directional long/short equity without a long bias

  • Disciplined, sustainable and proven investment process



Approach

The Equity Trend Program (ETP) is our long/short equity program, with a track record going back to 2007. In developing ETP, we’ve taken everything we’ve learned about markets as a CTA, and applied it to trading directly in equity markets. ETP is designed to take directional positions. It uses a diverse set of quantitative techniques to find clues about the direction of markets, of which trend following is one.

Behind both our trading programs lies the insight that trends in prices are often the reflection of shifts in society. Such a shift can manifest itself in different markets. For example, the fact that shoppers increasingly prefer to shop online causes problems for bricks-and-mortar retailers and opportunities for internet companies. To capture many different underlying trends requires a large investment universe. Not just including the big names of today, but also the big names of tomorrow. Our ability to handle a large investment universe and a large number of positions is one of our key strengths.

To be able to profit from these shifts in a changing world, we also have to be adaptive. No long bias. No fixed allocations to sectors or regions, but the recognition that slicing the universe in sectors or regions doesn’t do justice to the complexity of the world. This flexibility enables the program to perform well in times of market stress, especially those accompanied by declining stock markets, making it a welcome addition to many investment portfolios.

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Portfolio construction is art as much as science.

Because of our background, we approach the equity markets from a different angle than other long/short equity managers. This unique approach has led to returns that have a very low correlation to equity markets, but also to other long/short equity strategies. ETP takes advantage not only of Transtrend’s experience in understanding markets, but also of its considerable resources in IT, data collection, operations and execution.



Access to different trends

The investment universe of ETP consists of more than 2500 names across all sectors and regions, enabling the program to capture a wide variety of underlying trends.

'Crisis alpha'

ETP has a demonstrated ability to perform well in times of market stress, such as the Credit Crisis (2007-2008) and the Brexit Referendum (2016).

Distinctive approach

ETP’s systematic nature, flexible directionality and absence of any long equity bias have resulted in returns that have a very low correlation to other long/short equity strategies.

Track record ETP

  • etp

The ETP returns in the graph represent composite performance figures of ETP (EUR). These data should be viewed in conjunction with the explanatory notes, which are an integral part of these performance data, and the description of indices used. THE VALUE OF YOUR INVESTMENT CAN FLUCTUATE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

How to invest

ETP is available via different investment solutions that are tailored to meet specific client needs.

Transtrend fund

Luxembourg domiciled alternative investment fund Transtrend Equity Strategies SICAV, for which Transtrend acts as Alternative Investment Fund manager (AIFM), offers institutional investors direct access to ETP.

Managed accounts

A separate managed account enables clients to create a bespoke portfolio, customizing among others liquidity, funding, investor restrictions, reporting and risk profile.

For more information on these investment products and other solutions, please contact our Investor Relations team.



Risk considerations

Risk of loss can be substantial. The risk of loss in trading financial instruments such as individual stocks, stock certificates, American depository receipts, global depository receipts and contracts for difference can be substantial, among others, because the prices of these financial instruments may be highly volatile and some of these instruments permit an extremely high degree of leverage. You should therefore carefully consider whether such trading is suitable for you. No assurance can be given that you will realize a profit on an investment or that you will not lose some, all or amounts in excess of an initial investment.

Decisions Based on Technical Analysis. Transtrend primarily employs a trading strategy that responds in a systematic, technical manner to recent price behavior in the markets traded. The main foundation of such an approach is the assumption that most of the relevant developments in the underlying markets, including those related to market-specific fundamental factors, are reflected in and by the market prices. If the extent to which the market prices indeed reflect this deteriorates, the reliability of such trading strategy is prone to decline. Transtrend attempts to develop strategies that will be successful under many possible future scenarios. However, there can be no guarantee that the strategy of Transtrend will be effective in or applicable to future market conditions.

Get in touch with us

If you have a question or would like to know more about our services, please get in touch with our Investor Relations team.
Kick Heeregrave
Kick
Heeregrave
Jacqueline Wilton-D'Elfant
Jacqueline
Wilton-D'Elfant
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