Kappa
Κ
Absolute Return, Low Beta
Kappa is an absolute return strategy with the goal of achieving consistent returns across all market conditions. Kappa has a persistent, long-short market exposure. Short exposure is achieved through an inverse ETF.
Kappa is ideal for investors who:
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Aim to maximize positive returns during down markets
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Want to minimize portfolio beta and R2 and maximize alpha
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Seek returns that are uncorrelated with the market
Characteristics
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Strategy Type: Absolute Return
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Goal: Minimize portfolio beta and R2 and maximize alpha
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Portfolio Volatility: 18-20%, on average
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Inverse ETF Position Size: ~33%, on average
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Market Cap: Large-Cap
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Investment Style: Blended
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Equities Type: ETF
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Leverage/Margin: None
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Fees: 1% of AUM per year
Solutions Used
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Automated Downside Protection
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Automated Risk Management
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Automated Portfolio Diversification
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Automated Asset Allocation
Holdings
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VOX (Vanguard Communications Sector ETF)
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VCR (Vanguard Consumer Discretionary Sector ETF)
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VDC (Vanguard Consumer Staples Sector ETF)
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VDE (Vanguard Energy Sector ETF)
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VFH (Vanguard Financials Sector ETF)
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VHT (Vanguard Healthcare Sector ETF)
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VIS (Vanguard Industrials Sector ETF)
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VAW (Vanguard Materials Sector ETF)
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VNQ (Vanguard Real Estate Sector ETF)
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VGT (Vanguard Technology Sector ETF)
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VPU (Vanguard Utilities Sector ETF)
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SH (ProShares Short S&P 500 ETF)
Track Record
From a Real Account (NOT Simulated)
Simulated Results
Provided for your reference
Why do we show simulated results?
We officially launched the Kappa strategy on October 14, 2022. However, we understand that you may want to see more data. We provide simulated results to illustrate how a strategy could have performed historically. Simulated data is useful for getting a sense of a strategy's characteristics through a variety of market conditions.