We perform a hybrid of the carry trade that benefits directly from the highest yielding interest rates of the G10 currencies and then enhance those returns using minimal leverage. It is an arbitrage based strategy that significantly decreases risk to principal and eliminates both sharp draw downs and pricing risk. The strategy is geared towards protecting principal while providing consistent double digit returns for our clients.

Our methodology is not correlated to the global equity markets and therefore has remained largely unaffected by the recent credit and equity market turmoil.

Our methodology, coupled with our global technology partners greatly reduces both transaction and execution risk while targeting double-digit returns for our clients.  The methodology produces pure alpha and provides significant protection to principal.

After reading our methodology, please contact us with any additional questions.

Call 1-866-970-9339 for more information.

Academically, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, a risk-free profit. In more general terms, arbitrage is the practice of taking advantage of a price differential between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.

Below are a few more examples of arbitrage scenarios:

• Suppose that the exchange rates (after taking out the fees for making the exchange) in London are £5 = $10 = ¥1000 and the exchange rates in Tokyo are ¥1000 = $12 = £6. Converting ¥1000 to $12 in Tokyo and converting that $12 into ¥1200 in London, for a profit of ¥200, would be arbitrage. In reality, this "triangle arbitrage" is so simple that it almost never occurs. But more complicated foreign exchange arbitrages, such as the spot-forward arbitrage (see interest rate parity) are much more common.

• A common arbitrage involves borrowing at lower short term rates and investing at higher long term interest rates while pocketing the spread. The risk is that short term loan rates rise higher.
  
  
• One example of arbitrage involves the New York Stock Exchange and the Chicago Mercantile Exchange. When the price of a stock on the NYSE and its corresponding futures contract on the CME are out of sync, one can buy the less expensive one and sell it to the more expensive market. Because the differences between the prices are likely to be small (and not to last very long), this can only be done profitably with computers examining a large number of prices and automatically exercising a trade when the prices are far enough out of balance. The activity of other arbitrageurs can make this risky. Those with the fastest computers and the smartest mathematicians take advantage of series of small differentials that would not be profitable if taken individually.