October 2020 was marked by rising COVID cases and a new lockdown light in Germany and other European countries. As a result, volatility came into the market, which ultimately led to a drawdown of over 9% in the Dax.
The signals from Catana Capital‘s Big Data driven AI models were already relatively clear in the middle of the month, which is why we successively increased the hedge ratio from almost 20% to 60% in our overlay mandate for a fund of funds with a volume of over €110 million.
As in March of this year, the overlay strategy not only significantly reduced the volatility of the target fund, but even delivered a positive value contribution.
Over the year as a whole, the value contribution of the Catana overlay strategy is even stronger with a performance of over 6%.
This year alone, the strategy was able to show in two drawdown phases that Big Data and AI as hedging components offer real added value, while a number of traditional overlay models failed. Feel free to contact us to discuss in detail the overlay strategy and its individual configurability according to your wishes.