A transparent, rules-based, quantitative methodology

Trader Vic Index ®

 

Key Points

  • A diversified basket of 24 futures contracts spread across three asset classes: Physical Commodities, Global Currencies and US Interest Rates
  • Positions for each sector can be long or short (except the Energy sector which is positioned long or flat only) to reflect both rising and falling price trends over the intermediate-term
  • A transparent, rules-based, quantitative methodology with daily liquidity of underlying components
  • A historically non-to-negatively correlated methodology when compared to traditional assets like stocks and bonds over long-term periods, making the TVI® a potentially efficient asset allocation and portfolio diversification tool
  • Allocation weights are constrained and sectors re-balanced each month in an attempt to control volatility and maintain portfolio diversification
  • Developed by EAM (Trader Vic); calculated by RBS Business Services Private Limited

 
 
 




The TVI ® methodology is available here. Appendix A contains a list of amendments made to the index since its inception. Changes to an index methodology may have material impact on the results of the index, whether positive or negative.

This description is intended solely to provide an introduction to the TVI® and further details are available upon request. No assurances can be made that EAM’s indexes or other products will achieve their objectives or that losses will be avoided. Past performance is not necessarily indicative of future results.

Investors cannot invest directly in an index or other product developed by EAM. Investment products utilizing EAM’s products are speculative and involve a substantial degree of risk. One of the risks associated with the products is the complexity of the different factors which contribute to their results, as well as their correlation or non-correlation to other asset classes. The products could decline in a wide range of different market scenarios, including ones in which other financial products rise substantially. The products should be considered long-term investments; over the short-term there is a much greater possibility that the products may decline substantially, causing significant losses. Any factors which contribute to "trading ranges" (in which there is a lack of sustained, directional price movements in many markets) or “whipsaw” markets (in which price movements reverse suddenly or repeatedly) are likely to be adverse to the trend-following methodology of the products. See “Summary of Risk Factors” in the Terms of Use.

EAM Partners L.P. itself does not provide portfolio management services or any other form of investment advice. The only services that EAM Partners L.P. renders are the licensing of various indexes and methodologies to third parties in the financial and institutional community globally and serving as the general partner of various advisory subsidiaries that, in turn, provide portfolio management services. In particular, EAM Partners L.P. itself does not direct client accounts or provide commodity trading advice based on or tailored to the commodity interests or cash markets or other circumstances of a particular client. None of the information or material on this website is intended, or should be used, as any form of advice or recommendation. All information provided herein is subject to change without notice.