1. [Name to be decided]
Capital Advisors

2. QUOTE
“ Not yet have I found any better method to prosper during the future
financial chaos, which is likely to last many years, than to keep your net
worth in shares of those corporations that have proven to have the
widest profit margins and the most rapidly increasing profits. Earning
power is likely to continue to be valuable, especially if diversified among
many nations… ”
- John Templeton
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3. [Name to be decided] Investment Advisory division specializes in quantitative
trading and investment strategies. We offer tailor-made innovative products and
solutions to suit the need of our clients.
Our prime goal is to generate absolute positive returns each month, using risk
minimized market neutral strategies. Our proprietary investment process utilizes
proprietary in-house non-traditional investment strategies to achieve our absolute
return objectives.
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4. AWARENESS
MISSION
To lead the industry in the delivery of investment solutions that add value for our
clients, bringing innovation and discipline to strongly held investment convictions.
VISION
Our vision is to be the world's leading Investment Advisory firm helping clients secure
their future and increase personal net worth. We apply the highest standards to all
aspects of our business, from the sophistication of our investment process to the
ambitions of our ongoing research to the quality of our client service.
OBJECTIVE
To manage equity portfolios on National Stock Exchange of India and Global Markets,
using non-directional, market neutral and hedged strategies.
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5. Philosophy & Approach
Our Philosophy is preservation of capital and risk
minimization first, then delivering consistent, absolute
positive returns regardless of the market conditions.
We conduct our own research for the exclusive benefit of our clients.
Because we are not engaged in investment banking activities and
have no in-house products to push into portfolios, we have no
conflicts of interest to cloud our judgment. Ours is truly an
independent investment management firm.
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6. Investment Strategies
Probability based trading A combination of technical and fundamental strategies involving
varied holding periods. The trading strategies are tailored to eliminate general market risk.
Hedged Portfolio Trading Maintaining a market neutral portfolio is one of the fundamental
principles of asset management we follow, exploiting relative mispricing and inefficiencies
present in the market. Covertly known as Statistical Arbitrage, these are concepts focusing
upon absolute returns irrespective of market direction.
High Frequency Trading Over the years the time tested proficiency we have achieved in
striking a balance between the risk quotient of the products we trade, our exposure
coupled with our market timing skills, gives us that extra edge over the other players in the
market. UNIFIED MANAGED ACCOUNT
Relative Value / Spread Trading We go long an instrument while shorting another in such
a way that the ASSET ALLOCATION no net exposure EFFICIENCY market moves. The ACCOUNTS to profit
portfolio has TAX to broad MANAGED goal is
from relative mispricing between related instruments.
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7. Strategy Development Cycle
Market Trading Strategy
Research Development
Trading Strategy
Development Cycle
Trading Strategy Strategy
Execution Back-Testing
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8. Fund Management
Systematic Trading Strategy
 After a thorough research and techno-fundamental mix of statistical tools and technical
indicators, we have devised a systematic trading strategy which has generated above
average returns in any market conditions.
 The trading strategy that derives its returns from the relationship between the
performance of its long position relative to the performance of the short positions.
 The execution of multi-strategies involves a holding period until the difference between
the underlying reverts back to its mean. And until the difference converges to its mean
the strategy captures consistent profits using statistical arbitrage and hedging the risk.
 In our trading strategies, we focus on dollar neutrality and try to offset beta neutrality to
ASSET ALLOCATION TAX EFFICIENCY MANAGED ACCOUNTS
the maximum possible extent. The profit/loss on the trades is the difference between the
dollar values of the underlying long and short positions.
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9. Salient Features…
 Our trading strategies identify the most correlated stocks from the universe of all the
stocks listed on NSE F&O.
 All the strategies, and positions are always in a combination of a LONG positions & SHORT
positions i.e. HEDGED from the directional movement of the markets and hence the
positions will experience very minimal or no loss even if the market get directional.
 One of the main reasons we got interested in spread trading is the fact that we are not
taking a directional bet in the market, instead, we are taking a bet on the relative
performance of two instruments - so basically, we are saying, from where we are now,
instrument A will outperform instrument B, since historically they have behaved in a
UNIFIED MANAGED ACCOUNT
particular way relative to one another.
 On next slide, the performance of a few trading strategies on NSE will show that despite of
the market behaving random and directional in the last 5 years, our trading strategies have
been very much in range, and hence has given us trading opportunities in all the market
conditions. ASSET ALLOCATION TAX EFFICIENCY MANAGED ACCOUNTS
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10. Trading Strategy - Explained
Stock A Stock B We have 2 stocks here, Stock A
and Stock B. The chart represents
their respective prices from Apr-
2005 to Sep-2010.
As we understand the pattern of
each stock individually, it
becomes very difficult to
determine the direction of the
stock during any given point of
time and hence becomes difficult
Stock A - Stock B to trade on individual basis.
The chart below “Stock A – Stock
B” shows that the difference
between the 2 stocks has very
UNIFIED MANAGED ACCOUNT much been within the range for
the last 5 years and generates a
very systematic Tops and
Bottoms.
These tops and bottoms can be
traded while keeping the
ASSET ALLOCATION TAX EFFICIENCY MANAGED ACCOUNTS the underlying
direction and
hedged hence having a minimal
dollar exposure to the market.
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11. Snapshot of a few other trading strategies..
UNIFIED MANAGED ACCOUNT
ASSET ALLOCATION TAX EFFICIENCY MANAGED ACCOUNTS
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12. Historical Back-Tested Results on the Multi-Strategy Model
[Apr 2005 to Sep 2010]
Capital Profit/ Returns p.a. Cumulative Profit/Loss from 2005 to 2010 [In Rs.
100,000]
Year Utilization Loss (In %)
252.12
Mar’ 06 51,86,000 13,54,000 26.11%
232.64
Mar’07 91,67,000 49,70,000 54.22% 166.83
Mar’08 89,31,000 64,13,000 71.81%
127.37
Mar’09 67,06,000 39,46,000 58.85% 63.24
Mar’10 55,02,000 65,81,000 119.61%
13.54
Sep’10 72,17,000 19.48 26.99%
(6 months)
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13. Risk Statistics
Annual Standard Deviation 31%
Monthly Standard Deviation 5%
Risk-Return Statistics
Maximum Monthly drawdown -4.30%
Percentage of Positive Months 81.81%
Risk Statistics
Annual Standard Deviation 31%
Risk Statistics
Risk Statistics
Annual Standard Deviation 31%
Monthly Standard Deviation 5%
Maximum Monthly drawdown -4.30%
Percentage of Positive Months 81.81%
Return Statistics
Lowest Monthly Returns -4.30%
Highest Monthly Returns 17.79%
Average Monthly Returns 4.25%
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14. Contact Us
Mumbai
Ahmedabad
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