1. Fund’s fact
2. Investment strategy
3. Performance/ Reporting
4. Trading strategy
5. Macro economic environment
6. Risk management

6. Risk Management

6.1 – Describe your decision-making process in the building of your portfolio.
The key analysis of risk control focuses on the level of capital utilization. In other words, every initial trading strategy is opened utilizing up to 30% of the full assets of the fund. The remaining part of the assets are kept in liquidit in case they need to be used if the markets conditions change and a modification in the strategy has to be made.
The main risk control analysis is made utilizing many types of software (also the software distributed by the various Stock Exchanges, for example the margin calculator by Eurex); the level of the asset utilization is central and every position is being monitored every minute.
The assets are utilized at a level of 30% at the outset of a strategy and can reach a maximum level of 65% in the worst conditions. At those levels of margin requirements, the strategy has to be terminated via a stop loss situation.
6.2 – Extent of non-liquid assets as a % of the total portfolio
None.
6.3 – What is the maximum, minimum and average historical leverage?
Leverage is not allowed. The only leverage used is implied in the characteristics of the derivative financial instruments.
6.4 – What are the biggest risk factors which might affect the positive performance of your fund?
The biggest risk factors which could affect the positive performance of Euroption Strategic Fund would be from exceptional market disruption caused by international events such as a nuclear war or other major natural disasters. However, a big fall of the stock markets would create a new scenario of high volatility situation, where the Fund could thrive.
6.5 – What do you do when there is no investment opportunity in the market which fits your strategy?
If there is no investment opportunity in the market which fits us, we simply wait for the best next opportunity.