Risk is governed.
Compounding is the product.
STRATA is a core-satellite equities fund. It compounds capital by maximizing return per unit of risk — not by chasing the highest absolute return.
The objective
Time in a position is not a virtue; risk-adjusted contribution is.
STRATA’s single objective is to compound capital as efficiently as possible by maximizing return per unit of risk, measured by the Sharpe ratio. The fund earns that efficiency through disciplined selection, rigorous risk management, deliberate capital allocation — and the discipline to do nothing when no opportunity clears the bar.
Alpha sources are the raw material; risk management and capital allocation are the craft; compounding is the product.
Hedging as risk discipline
Hedge funds encompass directional, leveraged, relative-value, and market-neutral strategies. STRATA distinguishes itself by treating hedging as a deliberate portfolio-construction discipline: reducing unwanted exposures, defining the residual risks it chooses to carry, and protecting the compounding process through adverse regimes.
Hedging is not a promise to eliminate losses. It is a governed method of deciding which risks the fund intends to carry and how much capital those risks deserve.
One portfolio, two branches
A systematic core and a discretionary satellite — symmetric in strategic importance, measured against one standard.
Explore the architectureCore–satellite structure: two equal branches — a systematic core drawn as ruled lines and a discretionary, macro-first satellite drawn as contour lines — each measured on its own return-per-unit-risk rule, converging on one portfolio standard. The Core and Satellite fields link to their sections on the architecture page.
Discipline over activity
A period that produces no trade clearing the bar is an acceptable outcome.
Read the methodology