Twin Oak Short Horizon Absolute Return ETF (TOAK)

Overview

TOAK is designed to achieve capital appreciation while minimizing price volatility through an actively managed portfolio. The trading strategy involves the utilization of defined risk options, which have a short duration ranging from zero to one year. Defined risk options are structured so that the maximum loss is limited to the premium invested during the expiry period. To further mitigate risk, TOAK employs an option position pairing strategy. The fund refrains from using leverage or engaging in naked option writing, ensuring a more conservative approach to investing. It is important to note that option contracts may come from exchange listing, over-the-counter (OTC), or FLEX options; however, the use of OTC options carries an inherent counter-party risk. The portfolio managers at TOAK evaluate current economic conditions and market trends, as well as the existing holdings, to make informed investment decisions. The strategies employed may include long calls, long puts, debit spreads, or a combination of these, always considering crucial factors such as price, liquidity, duration, and associated risk.

Products and Services

• Defined Risk Options
  These options are structured to limit the maximum potential loss to the premium invested, providing a more secure investment vehicle for risk-averse investors. They are especially beneficial in volatile markets where unpredictability is high.
• Short-Duration Options
  TOAK focuses on options with a brief duration of zero to one year. This strategy allows for nimble adaptations to changing market conditions and quicker capital turnover, catering to investors seeking timely returns with managed risk.
• Active Management
  The portfolio is actively managed, with trade decisions based on comprehensive assessments of economic indicators and market trends. This proactive approach aims to optimize returns while minimizing risk exposure.
• Option Position Pairing Strategy
  This risk-reduction method involves pairing options positions to offset losses, enhancing the potential for profitability even in unfavorable market conditions.
• No Leverage Policy
  TOAK refrains from using leverage, reducing the potential for larger losses and ensuring a more disciplined investment strategy that prioritizes long-term capital preservation.
• Investment in Multiple Strategies
  The fund may employ various strategies, including long calls, long puts, and debit spreads, allowing for flexibility and adaptability in response to market dynamics.
• Market Liquidity Considerations
  Focus on liquidity is paramount; TOAK managers carefully select positions to ensure that the options can be executed quickly and efficiently, thereby minimizing execution risk.
• Risk Assessment
  Each investment decision involves thorough evaluation of risk factors, ensuring that every chosen strategy aligns with the overall risk tolerance of the fund and its investors.