Baron Point possesses extensive experience applying the internationally patented, formerly branded Standard & Poor’s Diversified Trends Indicator (“S&P DTI®”) within institutional portfolio structures. The S&P DTI® represented an innovative first-generation approach designed to enhance returns while maintaining a relatively low risk profile and providing a potential hedge against long-term portfolio volatility. It has since been enhanced and results in the Diversified Algorithmic Fixed Income Alternatives™ (DAFI™) Strategy.

The DTI® has since evolved into a second generation known as Trader Vic Index ("TVI"). The DAFI™ and TVI offer the same independent calculation agent via select Global Banks, affording investors easy access to both rising and falling price trends in innovative, transparent multi-asset strategies.

Both the DTI® and DAFI™ were created by Victor H. Sperandeo (“Trader Vic”), a strategic partner to Baron Point and an internationally recognized investor, trader, and financial commentator. These strategies can be structured and implemented through internationally recognized financial institutions and generally require minimal alteration to an existing institutional portfolio while providing access to a non-correlated synthetic asset class and return stream intended to enhance diversification and generate alpha.

Reasons to allocate to DAFI™:

• Unique potential to more accurately capture the net effects of GDP (Gross Domestic Product) and trends in prices.
• Historically, the strategy has sought to exploit movements in the real global economy, rapidly. This allows exposure to real economic prices in a long / short systematic absolute return strategy rather than relying on a single asset class as a proxy for economic performance.
• Historically, it has behaved similarly to the investment-grade Bloomberg US Aggregate Bond Index, without the credit risk. In favorable conditions it may shadow bond performance, while in inflationary environments it has the potential to generate positive returns.
• The strategy is risk-parity based, where return enhancement may be achieved with minimal incremental leverage on a passive or tactical basis.
• Historical volatility demonstrates lower hitorical drawdown risk than a 5-year U.S. Treasury Note.
• Provides significant depth and liquidity in its underlying traded markets.
• Institutional scalability, supporting approximately US$25 billion of funding capacity.

Linked Documents

• Standard & Poor’s Diversified Trends Indicator (“S&P DTI®”)