Respond effectively to market surprise

Oksana Patron

30 September 2022

Being able to respond effectively to unexpected market events and executing strategy via pre-determined values has led the Cor Capital Fund to win Alternatives category at the 2022 Financial Newswire-SQM Research Fund Manager of the Year.

The Cor Capital Fund seeks to protect and grow real wealth with less risk of capital drawdown, filling the void between cash deposits and longer-term or less-liquid investments such as stocks or real estate.

Asked about the fund’s key to success, Cor Capital’s executive director, Tom Rachcoff, said: “Our strategy is exposed to a broader range of market moves than typical risk on/off approaches.

“The Fund can have periods of strong performance at different times than the norm.

“We choose to execute our strategy via pre-determined rules, which we feel allows us to respond effectively to market surprises and without the stress of redundant bets.”

Rather than betting on accuracy of specific forecasts or predictions, the fund focuses on investing across a selected range of asset classes, capitalising on time-tested behavioral, mathematical and market principles to achieve incremental returns in excess of the average constituent, particularly during periods of heightened market volatility, the firm said.

“We are more medium-term ‘drawdown’ conscious but accepting of some short-term volatility, and our unusual portfolio structure permits greater volatility harvesting. We also offer daily liquidity which can be less common amongst our peers.”