Are you concerned about a potential drawdown in your portfolio?
Are you worried about extreme volatility spikes?
Have you taken the necessary steps to create an insurance against market volatility events?
Have you brainstormed ideas on how to insure your portfolio?
Do you have hedges in place against a market reversal?
Do you brainstorm ideas on potential profitable trades?
Are you confident enough to conduct suitable allocation under any market conditions?
Do you have insights of current global risks that can generate large drawdowns in your portfolio?
Are you aware of all the risks that may be building up in your portfolio under the radar?
Are you worried about losing more than 30% of your wealth?
Are you concerned about an overvaluation of assets without selling before they drop?
How do you become aware of a market correction?
Market corrections, volatility spikes, and crises happen more often now than in the past. Markets are now more unstable than ever. You need to be prepared. Get the tactical advange against possible dangers. Be prepared. Forewarned is forearmed.
We conduct global-macro and capital market analysis while trading our money by also applying our proprietary methods. We got positive results so far. We teach what we do to our Clients. This provides us with an edge since we take the same risks as you do. We put skin in the game. In some volatility and black-swan events, we generated profits above 120% per event. Then, we transfer all that knowledge to our Clients by using simple and easy-to-apply methods without the need for complex calculus or mathematical programming. We also conduct financial modeling and financial analysis of different types. Our services are purely based on hard-data and factual information analysis. 100% of what we do is simple, ready to apply, and practical.
Our services are delivered in the following formats: Newsletter, Training, and Consulting.
We Provide Unconventional Perspectives on Global-Macro Dynamics
What we do serves to test your own market views, use our insights to double-check your trades and trading hypothesis, to get supporting views for your own investment decisions, hedging strategies, tactical trading ideas, different assessments on the direction of the market. We provide a reality check of global markets: taking them as they are today; not as we would like them to be. We state a base case supported by hard data and factual information (90%), scenario analysis of the outcomes by trying to decode market signals (5%), and mapping opinions by market players to reduce any groupthink bias (5%). We try to show you what might be happening under the radar. We provide you with a range of potential profitable trades and hedges against a market reversal.
1) It is key to be well informed to avoid for instance 30% in losses during a crisis or a potential 40% in losses after a brutal volatility spike.
2) It is fundamentally important to know how to catch market rallies; and more important, to end the year in positive territory.
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It gives you a solid roadmap and strong knowledge of what the market risks are and potential profitable opportunities.
Click HERE to email us to customize your training. Share your frustrations with us. We will customize your training to solidify and expand your knowledge delivered in the Newsletter. In essence, you will be "renting a piece of our brain" (Part #1).
Click HERE to email us to discuss consulting assignment with us.
Get advanced knowledge with our support on what, when, how, and where to improve your global market reading and trading to improve your portfolio performance (a.k.a. "renting a piece of my brain" Part #2).
Imagine that you have a broad mapping of key market risks and potential opportunities.
Imagine that you are well equipped with suitable information to back your trades.
Imagine that you have the knowledge on how to read key market information and relevant market signals to hedge against a crisis.
Imagine that you get a good understanding of trading the economic cycle by knowing how to read specific indicators to protect your capital.
Imagine that you are equipped with fundamental skills to seize potential profitable opportunities.
1) An independent opinion on what is going on at the global-macro level and how they may impact your firm, personal finance, your pension, and your portfolio.
2) Practical skillsets to read market risks and to detect potential profitable opportunities. You get flexibility as we can remotely or on-site.
3) Actionable ideas to re-assess your portfolio (including real assets too), your personal or corporate investments, supported by (practical) hard data that covers your back.
4) You are taught how global-macro hedge fund managers generally trade, how to hedge from extreme volatility, and large market downturns like the COVID-19 Crisis.
5) You get critical insights that can help you articulate better questions for your current advisors, partners, or other professionals; as a "check and balances" monitoring toolkit.
6) You can use all the knowledge you can get in your firm and in your personal finance. The knowledge transfer is backed by more than 2 decades of track record in all areas of finance and investment. This ranges from corporate finance, hedge funds, private equity, venture capital, M&A, financial modeling and analytics, hedging structures, proprietary trading to black swan and volatility trading at global capital markets.
7) You are equipped with practical skills to articulate suitable trades, tactical hedges, and to seize investment opportunities under any market conditions.
Directional Alpha is a creative-driven financial consulting firm specialized in World-Macro and Capital Markets analysis with a relentless forward-looking focus on global market conditions.
Our core is based on models and methods that focus on capturing key World-Macro dynamics and developments.
Our main focus covers areas such as Systemic Risk & World-Macro Conditions, Modeling, Hedging, Tail-risk, Volatility, Trading, Investment Strategies, and what is called Market Groupthink.
We specialize in high-level analysis. Our aim is to be free of Groupthink. We look at risk and opportunity in all of their aspects. Risks evolve over time as do opportunities.
Specifically, Systemic Risk usually builds up while markets most often tend to ignore what they do not understand. We focus on insights for the benefit of the balance sheet. Risk and opportunities can be better managed without Groupthink.
Our Mission is to help Clients to have additional and unconventional perspectives on World-Macro dynamics.
The buildup of risk is a silent process, which is called Systemic Risk. It is formed below the radar and it is colorless. It operates while People are asleep. It also operates while People are awake. Systemic Risk is relentless. Systemic Risk is not about what happened yesterday or what will happen tomorrow. It operates over a longer time frame. Systemic Risk brings the past into the present. A key element of Systemic Risk is asset mispricing, which can persist for years. Systemic Risk drives instability. Systemic Risk is the last Volatility factor; and the real fear factor.
Crises have a big impact on Fiduciary Duty, which is key. Companies have to do the best for their Shareholders and Investors. For us, this means relentless and coherent risk management. We do not take anything for granted.
Forewarned is forearmed.-
We have been exposed to economic and financial crises for a long time. We operate with a Hedge Fund Trader mindset. Our focus is practical, hands-on, and with a pure-play practitioner approach.
We invest in knowledge that we transfer to Clients who want to adopt and implement Global-Macro Hedge Funds Strategies and specific investment tactics in their Companies as well as in their Personal Finance. We understand that many people get caught by a crisis such as the 2008 crisis or the COVID-19 crisis. Their assets, portfolios, pension funds, and profits are wiped out overnight and they lack the necessary skills to foresee and manage those types of situations.
The fact that we trade and manage our money provides us with an edge as a key differentiation factor when compared with other consulting and training firms. We take the same risks as you do.
Skin in the Game is Primer for us!
In some volatility and black-swan events, we generated profits above 120% per annum with our funds. We transfer all that knowledge to our Clients by using simple, easy-to-apply, and unconventional methods without the need for complex calculus or mathematical programming.
Our products and services are purely based on hard-data and factual information analysis. 100% of what we do is actionable practical knowledge ready to apply.
We equip our Clients with an early warning framework adapting it to our Clients' models to detect financial crises and Systemic Risk. We provide high-level coherent monthly assessments of systemic risk and clustered/regional tail risk.
We take a Global-Macro approach to map out suitable investment opportunities in different markets and sectors. We analyze the best instruments, products, and vehicles that meet suitability to complement your risk profile, style, and investment policy.
We provide independent opinion on risks and investments (world/regional/local), Investment Policy assessments, and alternative hedging scenarios with Balance Sheet Impact Assessment. We conduct re-allocation analysis under changing dynamic world-macro drivers, maintaining balance sheet realignments vis-à-vis changing investment objectives. We prioritize balance sheet risks and responsesand assess the markets’ inability to price tail risks. We balance a suitable investment mix with timely re-allocations with alternatives to traditional investment (e.g., bond investments). High-quality quarterly asset class assessments with a focus on suitability and timing given the natureof Clients’ Balance Sheets. Diversification strategy scenario analysis to improve Balance Sheet profit/risk profiles.
We believe that most models are incomplete, where all aspects of risk count, not just those that are currently modeled. We believe that balance sheets need to be protected from Groupthink, especially given that markets are not infallible.We provide high-level insight on fixing financial modeling to enable better decision-making.We look at what is happening at the system level and turn it into modeling and investment insights. This content improves our Clients’ decision making process.
We deliver high-level coherent insights and risk-hedged investment strategic analysis on tactical funds allocation over suitable time horizons according to Clients’ risk profiles. We diagnose high-risk assets given markets uncertainties, suitable hedges, timing, and re-allocation trade-offs. We develop tail and volatility risk hedging and trading strategies, liquidity assessments for financial instruments, and deliver tactical investment analysis and allocation scenarios in compliance with regulations, long-term plan re-assessment analysis based on tactical hedges. We providein-depth analysis of the best suitable Alternative Investments (AI) and traditional investments under different Global-Macro scenarios.
Fernando Walter Lolo, CAIA specializes in Alternative Investments, World-Macro events, and Volatility trading strategies.
He founded Directional Alpha, which was first a private asset management fund, and thereafter, it converged into a consulting firm. The firm focuses on tail risk, volatility trading, hedging, geopolitical international finance, hedge fund strategies, financial crises, and macro events. Fernando went through a difficult rethought process of traditional financial methods. His approach is unconventional.
He advised on international finance, Financial Stability Board (FSB), and G-20 related topics at the Ministry of Economy of Argentina. Prior to that, he worked in finance and alternative investments at the World Bank Group based in Washington, DC. Before that, he worked in finance in Latin America (LATAM).
Fernando strategized his specialization for a long period of time by following a "Mosaic" approach in different Ivy-leagues and other Institutions, which also included unconventional education. He holds an MBA, a Master in Finance, and Post-graduate Degrees in financial engineering, fund management, and strategy from Harvard University, Columbia University, Universidad Torcuato Di Tella, Universidad de Buenos Aires, and Johns Hopkins University. In addition, he is a Certified Public Accountant and holds the CAIA designation (Chartered Alternative Investment Analyst).
During his career, Fernando worked in the US, Emerging Markets, and Europe.