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Tianyou Fund

Tianyou Asset Management, LLC

Company Overview

Tianyou Asset Management, LLC is an investment management company aiming to achieve capital growth using innovative managed futures strategies. Tianyou Asset Management, LLC is a Commodity Pool Operator (CPO) registered with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA).

Fund Strategy

The Partnership’s objective is to achieve capital growth by obtaining consistent monthly returns which have a low correlation with the monthly returns of major US equity indexes. The manager is currently targeting between 1.5% an d 2.5% return per month or about 25% return annually.

The manager primarily writes short-term options on index future contracts which are believed to expire worthless with an over 90% probability based on technical and fundamental analysis. The portfolio is sometimes hedged with future positions and with long-option positions. The strategy is designed to complement a trend following strategy and is suitable for the investors who seek alternative investment and diversification.

The manager uses proprietary methodologies of fundamental and technical analysis to predict the likely range and the likely trend direction of index future contract prices during the period from option position initiation to option expiration. Technical analysis forecasts the direction of prices when the traded options are expired through the study of historical statistical data. Fundamental analysis predicts the price movement trend at the options’ maturity based on the overall state of the economy, interest rates, production, earnings in the period of the option cycle. The manager also takes consideration of other factors such as volatility index movements, market sentiments, seasonal cycles, and inter-market conditions. The proprietary quantitative models generated from market analyses aim to predict the direction of index price trend, the continuance of the trend, and the strength of the trend. This prediction is used to identify potential trading opportunities and generate trading signals. Although the index option writing strategies are mainly used, the Partnership may trade index future contracts or long options for hedging or speculative purposes in some market conditions.

Quick Facts

Category:
  • Relative Value » Volatility
Inception Date: 2012-10
Monthly Performance Data:
Apr 1.47%

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