Odin Capital Management, LLC
The team is from left: Bruce J Roberts, Ulrik C Trampe and Julia Robert Nix. “The use of options is an integral part of our investment approach. We use options to generate income as well as to manage the exposures and risk in both the long and the short portfolio. The benefits from using options are numerous. First and foremost, as options have an asymmetric return profile, they are well suited for hedging the catastrophic downside risk at a reasonable cost. Secondly, options permit us to continuously harvest returns from the inherent volatility in the financial markets. “ As an investor focused firm Odin Capital Management works hard to provide a portfolio with strong returns that abides by their holistic approach, as Ulrik highlights.
“When constructing the long portfolio, we use multiple strategies to select securities and determine the allocation between asset classes and regions. We consider the global macro environment and return opportunities for all asset classes. Equally, we use strategies such as; growth, value, momentum, restructuring, sum of the parts,
relative value and quantitative factors in the security selection process. However, the most important concepts we use are expected return, quality, narrative and the downside risk assessment.”
Ultimately, the firm works for its investors, and is committed to creating a portfolio that meets their needs, and this will be Odin Capital Management’s ongoing aim as it looks towards a bright future, as Ulrik concludes.
“Risk is an important consideration for an investor. However, there is considerable disagreement or confusion over what investment risk is. In our view the real risks to an investor is missing the opportunity to earn attractive returns and to suffer a catastrophic loss of capital. An attractive return in our view is at a minimum a return that after fees expenses and taxes exceeds the growth of nominal GDP. A catastrophic loss of capital is a loss that will cause an investor to be unable or unwilling to continue investing with the goal of earning attractive returns.
“Fundamentally, the Odin Raven Fund, LP is a partnership, and as such we actively keep our limited partners informed about portfolio construction, security selection and our investment views. We do this with a brief and informal daily email and two monthly investment reports. We are pleased to receive comments or suggestions from our partners. We are ourselves invested in the fund and, therefore, we are highly motivated to try and succeed with meeting the dual investment objectives.
“Overall, we do not believe that short-term volatility in securities values is a risk investors should pay dearly to reduce. Instead such volatility presents opportunities for investors who are willing to try and time their purchases or sales and are willing to engage in actively managed options strategies.”
“Looking ahead, our mission will remain to develop a better investment approach to meet the dual objectives of attractive returns and reduced catastrophic risk. This will provide us with many exciting opportunities which we look forward to taking advantage of.”
Acquisition International - Hedge Fund Awards 2018 11