Our Strategy   Account Facts
At Compak Alternative Investments, we believe in striking a balance between managing risk and growing returns. We trade options on U.S. stock index, commodity and Treasury futures while concentrating on portfolio diversification and risk management to achieve stable growth.
Individual accounts
Real-time transparency
Daily liquidity
No lock-in periods

Min. Account Size: $10,000
Management Fee: 2.5% annualized
Performance Fee: 25%-35%

Our investment strategy is characterized by four principles:

Trading with Probability
Every trade requires a buyer and seller. Many options buyers are hedgers—large portfolio managers that want to insure their positions against losses. Since our strategy generates profit from option value decay, we are not highly dependent on trend following or market timing.

Investing a Modern Portfolio
Compak Alternative Investment’s trading strategy has a very low correlation to stocks and bonds. Our strategy can profit in positive or negative markets and fare better in non-trending markets. We believe that our program’s flexibility and low correlations can help strengthen traditional portfolios, especially in market conditions since 2001.

Studies performed by Harvard, Yale, and various commodities exchanges have demonstrated that the addition of Managed Futures into traditional portfolios can help improve returns while diminishing risks. Nobel prize winning economist Dr. John Litner appropriately named this diversified portfolio the Modern Portfolio.
     
  Managing Positions & Portfolio Risk
Selling options always entails a substantial risk. Thus, Compak Alternative Investments employs a proprietary risk management system that attempts to protect investors from sudden or major market moves. These include margin management, stress testing, scenario analysis and profit taking techniques. While there is unlimited risk in selling options, we attempt to generate a large range of potential profitability by selling and managing deep out-of-the-money contracts.

We intrinsically diminish market risks by being able to diversify across multiple asset classes such as commodities, treasuries and stock indices. These have low or negative correlation with each other. This diversification improves the opportunity for returns while reducing portfolio volatility risk. Please be advised that there is the potential for unlimited risk of loss in writing options on futures.

Capitalizing on a Tax Advantage
As a registered Commodity Trading Advisor, Compak Alternative Investments trades futures are taxed at 60% long-term capital gains for US investors. This can translate to a substantial tax benefit for investors in higher tax brackets.