Investment Strategy

At NOMAD Capital Group, we operate a Long-Short Focused Investment Strategy. Our investment objective is to help minimize the impact of the negative compounding effect on our clients’ accounts in volatile years and maximize the portfolio return with the least amount of assumed risk possible. This strategy is not tax-efficient by nature.

The Long-Short Focused Investment Strategy consists of three components:

I. Thematic Contrarion Strategy

Thematic Contrarian Strategy is a revert-to-the-mean strategy that utilizes leveraged index ETFs and sector ETFs for long-short positions based on oversold or overbought macro conditions that are ripe for reversals. The position entry and exit timing and position size (risk) management is based on global macroeconomics, sector relative strength, COT positioning, and technical analysis signals. The allocation percentage of this strategy ranges from 20% to 80% of the total portfolio. This strategy is a mid-term trading program by nature.

II. Stock Alpha Strategy

Stock Alpha Strategy focuses on finding stocks that have the highest probability for 100% return within three years. Stock selection focuses on bellwether, hyper growth, and turn-around companies. The stock selection is based on global macroeconomics, fundamental, and technical analysis. The position entry and exit timing and position size (risk) management is based on technical analysis signals. The allocation percentage of this strategy ranges from 20% to 50% of the total portfolio. This strategy is a long-term investing program by nature.

III. Options Strategy

Option Strategy focuses on two main sub strategies: Covered Call/Protective Put Strategy and Long Call/Put Strategy. Covered Call Strategy will focus on generating synthetic dividends and lowering cost basis on existing positions in the Thematic Breakout Strategy and the Stock Alpha Strategy. Protective Put Strategy will focus on protecting the existing positions’ unrealized gains. The Long Call/Put Strategy will be used as an asymmetrical position sizing strategy to increase position size on existing profitable positions with limited additional risk exposure. The position entry and exit timing and position size (risk) management is based on the underlying position’s global macroeconomics, fundamental, and technical analysis. The allocation percentage of this strategy will be limited to 5% of the total portfolio. This strategy is a complementary strategy to the two main strategies and is a short-term trading program by nature.