About

Company

 

1512 St.Gallen Capital Management was founded in 2015. It is an alternative investment advisor based in the canton St.Gallen, Switzerland. The firm is registered as a CTA (Commodity Trading Advisor) with the CFTC (Commodity Futures Trading Commission) and is a Member of the National Futures Association as well as the Financial Services Standards Association (VQF) in Switzerland. 1512 SGCM provides its services exclusively to Qualified Eligible Participants as defined under section 4.7 of the Commodity Exchange Act.

Special Expertise

The only Swiss-based CTA exclusively focused on identifying short- to medium-term trend changes.

COVERAGE & RATIONALE

1512 SGCM analyzes about 130 (equity, interest rates, commodities and foreign exchange) futures markets with the purpose to find out how main investor groups shift their portfolio in each market on a weekly basis. Investors are grouped into big investors (e.g. commercials, big institutions, corporates) vs. crowd/ retail investors.

For this analysis 1512 SGCM develops and applies own indicators, which transfer information across markets into a score between 0 and 100. Extreme readings (i.e. <20 or >80, respectively) of those indicators systematically give insight whether main investors in respective markets are rather positioned for a bull market or a bear market. This, combined with the analysis of trend strength allows 1512 SGCM to identify trend changes and short-term corrections, while always trading in the same direction as the big investors' money.

Used information include combinations of price action, volume, volatility, Commitment of Trader Reports, inter-commodity relationships, intra-commodity calendar spreads and more.

ADDED VALUE

1. Alpha: Since January 2015, the St.Gallen I Counter-Trend Strategy realized a compound RoR of just above 15% with a monthly gain frequency >60% and a standard deviation just above 30%. The strength of the trading strategy is to identify trend changes of about 5% and grasp 2-3% of the referring move. As a consequence, the program mainly outperformed in months of negative S&P500 or negative HFRX Systematic Diversified CTA Index performances.  

2. Volatility Smoothing: 1512 SGCM’s strategy is negatively correlated to equities (around -0.05), as well as to CTAs (around 0.05 against HFRX Systematic Diversified CTA Index). It therefore not only serves as sustainable alpha element, but also as effective diversification tool in any given portfolio. Please click here for further information.

 

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Pro Forma 1.70% Management Fee and 20% Incentive Fee Applied.