Overview
The Otso US Opportunities fund invests in US equities and uses simple agreements called ‘options’ to enhance returns and minimize losses.
So how does this work? We use fundamental analysis to select good quality investments. We use ‘options’ agreements to get paid when we lock in a price to buy, and paid again when we lock in a price to sell. In so doing, we enhance returns and reduce losses. The stragegy is driven by years of experience and rigorous evidence driven analysis.
Otso Capital creates differentiated alpha by using cutting edge empirical techniques to select investments, and by deploying derivative overlays to optimize the buying and selling process.
The Otso US Opportunities fund is benchmarked against the S&P500.
How to Invest
Why us? How we invest
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We use our years of expertise and analytical rigour to identify good quality investments, and we use derivative overlays to optimize buying and selling.
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We draw upon core fundamental analysis to identify stocks that we believe have strong risk-adjusted returns. This is based on fundamental analysis of the firms’ characteristics. We also consider the technical backdrop when selecting investments.
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Overlays are important our approach. We invest in stocks we like, using simple agreements called ‘options’ that pay us to buy at a good price and pay us again when we sell. At a high level, this involves strategies such as using cash secured puts to enter positions and covered calls to exit, as an example. The goal of the overlays is to enhance the investment process.
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We have over a decade of investment experience, grounded in analytical rigour. The team has written more than 40 peer reviewed articles and holds PhDs in finance. This gives a strong analytical bedrock, and practical experience, with which to enhance investment decisions.
Performance
| Year | January | February | March | April | May | June | July | August | September | October | November | December |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | – | – | – | – | – | – | – | – | – | – | 4.5% | 2.3% |
| 2025 | 10.4% | -2.6% | -4.0% | -0.8% | 7.4% | 4.0% | 3.6% | 1.0% | – | – | – | – |
What does the fund do & What are the investments?
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The fund invests in US listed equities and deploys derivative overlays in service of enhancing returns.
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Selection: We select investments based on deep dive fundamental research. This includes research into company fundamentals’ and portfolio construction.
Investment: We enter positions by having regard to market conditions, considering the optimal way to enter a position. We also deploy derivative overlays on these positions in order to enhance the entry and exit of positions, and enhance returns.
Risk management and porfolio rebalancing. We actively monitor the portfolio to ensure that the portfolio’s risk profile is appropriate and to avoid excessive exposure to any one company.
Why choose us?
Otso Capital focuses on evidence driven expertise. We rigorously evaluate investment decisions, having regard to over a decade of experience and myriad peer reviewed publications. We invest our own capital in the fund and are committed to working for, and with, you.
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The team has over a decade of experience, including more than 30 peer reviewed academic articles. We ensure that investments are based on cutting edge empirical evidence.
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We invest our own money in the fund. This ensures goal and incentive alignment.
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Our clients are important to us. We avoid conflicts. We have external auditors and accountants to oversee the fund and provide reassurance.