ART Tail Protection Strategy

Strategy Overview

The ART Tail Protection Strategy is a systematic trading program designed to seek opportunities during periods of extreme market stress, volatility expansion, or rapid price dislocation.

The strategy focuses on identifying market environments where traditional portfolios may experience elevated downside risk. Through a rules-based framework, the program dynamically evaluates market conditions and positions.

Portfolio Role

Tail protection strategies are commonly used by institutional investors as part of a broader portfolio risk management framework.

When incorporated within a diversified portfolio, such strategies may serve to:

• Provide potential protection during significant equity market drawdowns
• Diversify sources of return away from traditional assets
• Improve overall portfolio resilience during periods of extreme volatility
• Complement traditional managed futures and macro strategies

The ART Tail Protection Strategy can be implemented either as a standalone allocation or as part of a diversified managed futures portfolio.

Strategy Characteristics

• Systematic and rules-based investment process
• Designed to respond to volatility spikes and market dislocations
• Focus on asymmetric risk/reward opportunities
• Dynamic exposure based on market conditions
• Institutional risk management framework

Futures Markets Traded

The strategy may trade exchange-traded derivatives across global markets, including:

• Equity index futures 
• Volatility-linked instruments
• Currency futures
• Interest rate futures
• Commodity futures

Exposure is determined by the strategy’s systematic models and risk management framework.

Risk Management

Risk management is an integral component of the strategy.

The program utilizes predefined parameters designed to manage:

• position sizing
• exposure levels
• portfolio risk limits

The strategy may maintain limited or no exposure during periods when market conditions do not meet the program’s criteria.

Important Risk Disclosure

Trading futures, options on futures, and other derivatives involves substantial risk of loss and is not suitable for all investors. Investors should carefully consider their financial condition and risk tolerance before allocating capital. Past performance is not necessarily indicative of future results. This material is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any investment product or advisory service. Any offering will be made only through the appropriate disclosure documents and offering materials.