The Overlay strategy family uses liquid sovereign bond futures to generate uncorrelated alpha on top of any existing portfolio. Because the active management is conducted entirely within the futures overlay, there is no need to reposition the underlying portfolio -- making implementation fast, tax-efficient, and operationally seamless. Three risk variants allow each client to calibrate the active risk budget to their specific tolerance and mandate.
No disruption to the underlying portfolio. Full capital efficiency.
Conservative
Notional Overlay -- Conservative
Active risk ±5 years. Designed for clients seeking modest, uncorrelated return enhancement with minimal disruption to existing fixed income allocations.
Moderate
Notional Overlay -- Moderate
Active risk ±10 years. A balanced overlay suited to portfolios seeking meaningfully higher alpha contribution while preserving existing systematic exposures.
Aggressive
Notional Overlay -- Aggressive
Active risk ±20 years. Maximum alpha expression within the overlay framework, suitable for institutional mandates with higher risk tolerance.
Bond Plus strategies pair a passive, index-replicating bond portfolio with an active duration overlay executed in futures. The passive sleeve captures the systematic risk premia of a traditional fixed income benchmark while the overlay layer adds active, model-driven alpha uncorrelated to credit spreads. Available in five benchmark variants to match the client's existing fixed income mandate.
Two independent sources of return in one allocation: credit spread carry and duration alpha.
Treasury
Treasury Bond +
Active duration overlay applied to a Treasury bond benchmark. Delivers core-plus fixed income performance with tax-advantaged futures execution.
Mortgage
Mortgage Bond +
Alpha overlay on a mortgage-backed securities portfolio. Duration management adapts to prepayment cycles and monetary policy shifts.
Municipal
Municipal Bond +
Tax-aware active duration management layered over a municipal bond allocation, targeting improved after-tax total return.
Corporate
Corporate Bond +
Duration overlay targeting corporate bond portfolios. Designed to separate rate risk from credit alpha, improving overall risk-adjusted return.
High Yield
High Yield Bond +
Active interest rate management applied to high yield allocations. Reduces uncompensated rate risk while preserving full credit exposure.
QUAD Macro extends the QuAD framework beyond interest rates to monitor macro regime shifts across equity, commodity, currency, and rates markets. The strategy is designed to be long volatility and defensive in character -- providing meaningful positive returns when risk assets are under severe stress. In benign environments, the strategy generates modest positive carry through systematic rebalancing of macro exposures.
Designed to be a portfolio diversifier, not a return maximizer. Negative correlation to equities in drawdowns.
The US Rates SMA is the highest-conviction, highest-volatility expression of the QuAD framework. Managed exclusively in US Treasury and agency futures, the strategy has no passive bond component -- every unit of risk is active. Returns are pure alpha: uncorrelated to equity beta, credit spreads, or systematic fixed income risk premia. Full transparency and daily liquidity make it accessible to institutional investors who require the infrastructure of a separately managed account rather than a commingled fund.
100% active risk. Full transparency. Daily liquidity. No lock-ups.