Systematic Risk Process

Four Steps to Consistent and Repeatable Performance

Pacini Hatfield Investments uses a systematic investment approach to eliminate emotional trading while using millions of data points to assist the Chief Investment Officer in making investment decisions. The performance of all our programs is based on this approach that we have been refining for over a decade.

Step 1

Establish Core Investment

We use our many data connections to several institutional data providers to select high grade underlying investments to build a core allocation. We scan highly liquid, optionable, equities and diversified ETF’s to build a solid foundation for income generation and capital appreciation.

Step 2

Create Hedge

Our first and foremost objective is to create a true hedge on all the positions we hold. These are not synthetic hedges or exotic combinations of options. We simply hedge our holdings by purchasing put options on the exact underlying. These hedges last several months and are dynamic to client needs.

Step 3

Seek to generate income and capital appreciation

The last step in our investment process involves generating income on top of the existing equity positions. The income generated offsets the cost of putting on the hedge in step 2 and generates additional income on a monthly basis.

Step 4

Monitoring and Monthly Adjustments

We have developed proprietary software to scan the entire market and run technical and fundamental analysis to assist the Chief Investment Officer in making decisions on where to buy and sell options on the existing holdings. This process helps to maximize the income generated and minimizes the downside risks.



Step 1

Establish Core Investment

We use our many data connections to several institutional data providers to select high grade underlying investments to build a core allocation. We scan highly liquid, optionable, equities and diversified ETF’s to build a solid foundation for income generation and capital appreciation.

Step 2

Create Hedge

Our first and foremost objective is to create a true hedge on all the positions we hold. These are not synthetic hedges or exotic combinations of options. We simply hedge our holdings by purchasing put options on the exact underlying. These hedges last several months and are dynamic to client needs.

Step 3

Seek to generate income and capital appreciation

The last step in our investment process involves generating income on top of the existing equity positions. The income generated offsets the cost of putting on the hedge in step 2 and generates additional income on a monthly basis.

Step 4

Monitoring and Monthly Adjustments

We have developed proprietary software to scan the entire market and run technical and fundamental analysis to assist the Chief Investment Officer in making decisions on where to buy and sell options on the existing holdings. This process helps to maximize the income generated and minimizes the downside risks.



Technology Advantage

Our proprietary systems allow us to:

Tactically deploy options to maximize returns while mitigating downside risk
Properly hedge client positions and assist them in achieving their investment goals
Monitor positions over time to evaluate ongoing risk levels
Identify opportunities to test feasibility of program against other equity holdings

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