Our investment philosophy is centralized on investing in an uncorrelated, directionally agnostic & diversified manner by finding patterns within financial data and leveraging these on short time scales executed both manually and algorithmically.
This means that we maintain low risk compared to the usual buy-and-hold approaches whilst allowing us to outperform significantly both in falling and rising markets.
For our performance to be uncorrelated with worldwide market movements, we have allocated capital to 4 different trading desks. Each one of them is specialised on specific asset classes and applies unique strategies.
U.S Equity Derivatives & Index Futures
Algorithmic Trading, ETFs, FX, Indices, Commodities
Multi-Month trends - Fixed Income Derivatives, Index Futures, Currencies
Forex Currencies, Indices & Commodities
Data Centric Approach
Data-Backed unbiased investing
Our focus on post-mortem data analysis has allowed us to prevent systematic mistakes. As such we learn which setups had the best odds and which ones we should avoid. We filter down our best strategies on each desks and place resources focused on optimizing them. This means we continuously enhance our risk management & overall exposure.
These approaches revolve around our belief that markets are becoming increasingly efficient and hard to outperform in longer time frames (5-10 years). Furthermore, medium-term investments (1-5 years) are overly risky within the current macroeconomic environment.
As such we believe that shorter-term investments are ideal, they can be made to be highly predictable using our models. We can therefore open and close many more positions, leading to smaller individual sizing and therefore less risk at any given time, whilst allowing us to outperform the markets in the longer term.
Becoming an MCD Partner
Ideal Investment = Capital Growth + Risk Management + Liquidity + Transparency
Tailor Made Solutions
Our Technology and expertise for your Investment solution. We understand, every partner is unique with different investment objectives and constraints. For those with the most sophisticated needs, our highly skilled team delivers flexible investment solutions to fit the goals you seek.
By aligning with our client’s investment objectives and constraints we deploy the funds seeking decorrelation and capital growth across a well-diversified, actively managed portfolio consisting of US Equities, Global Indices, ETFs, Forex Currencies, Commodities, Derivatives, and Fixed Income within our respective divisions.
Asset class allocation and instrument selection would be dependent on the client's risk/return profile and liquidity. Our fund is focused on generating uncorrelated returns by actively rebalancing and reallocating funds given the business cycles.
Risk Adjusted Portfolios
At MCD, we mitigate risk by diversifying our portfolio & operations, as you can see above with 4 divisions specialised on various financial products and approaches. Our sharpe ratio of 2.18 shows the results of our low risk high return approach.
By relying on data science principles to manage our risk, we are able to identify mistakes efficiently to avoid them in the future. This data centric approach permits us to scale up or down on certain strategies & divisions depending on market conditions.
By constantly stress testing our portfolio, it’s proven to be adaptable in any market conditions, depending on the business cycles, volatility & liquidity in the market that we highly monitor to adjust our risk exposure. (At any given moment, the value at risk in the fund does not exceed 0.5%).
At MCD Capital one of our main success point thus far has been complete transparency between all individuals involved in the firm. Our partners are able to see thoroughly through our live operations via the client portal as well as actively participate to internal meetings.
We rely on our partners to be highly informed about our operations, seeing their assets being actively managed by MCD and attending internal team meetings to be fully immersed in our functionning.
Our partners have the ability to talk with any member of the team at any given moment to discuss their objectives or answer any queries they may have.