Dipsea Capital executes investment strategies that seek to perform with very high consistency throughout all market conditions. The investment strategy employs a tactical relative value trading strategy in short-dated options on U.S. equity indices and U.S. stocks. The Dipsea Capital Fund aims to produce non-correlated returns to major asset classes, thereby diversifying its partners’ overall portfolio risk.

By prioritizing the trading of liquid products, we ensure the ability to swiftly adjust the portfolio in response to market changes. Furthermore, strict risk limits serve as a safeguard, mitigating potential losses and safeguarding our capital. This commitment to liquidity and risk management forms the bedrock of our strategy, enabling us to navigate market fluctuations with prudence and resilience.

An essential component of our investment process lies in our capacity for rapid adaptation and modification of the portfolio. This agility is facilitated by the short duration of our portfolio and our deliberate decision to operate in a high touch manner. By closely monitoring the market dynamics and actively managing our positions, we have the capability to promptly identify anomalies and make timely adjustments to our portfolio. When our models detect a transition in the market towards a higher volatility regime, our strategy dictates adjusting our positioning from a short to a long gamma profile. This tactical shift is undertaken to effectively manage risk and capitalize on the opportunities presented by a more inefficient market.