Our Strategy

Bumblebee Capital develops advanced risk control strategies.

Our primary focus is on the development of a proprietary risk control strategy that evaluates Equity Markets on the basis of how our risk scenarios interact in the equity Market risk landscape. This enables us to better control risk and profit from significant trends and critical Market events.

The risk control Strategy provides continuous feedback to the Market risks, liquidity concerns and other key issues affecting your portfolio managers, traders, and risk managers.

Strategies in development include portfolio overlay strategies, basis trading and volatility trading.

Our study - "Generating Profitable Equity Trading Signals – From Risk Management to Risk Control" is forthcoming.

Risk Landscape: 

The Risk Landscape is created from a set of risk scenarios that identify the current state of the Market. Each risk scenario shares a relationship with other scenarios, which are expressed in the risk landscape. Each Scenario can alter the risk landscape in specific ways. Utilizing such a strategy enables both a top-down and bottom-up risk management approach which we feel is lacking in most equity strategies today.

  • Strategies are capable of offsetting each other to limit Trade and / or Portfolio risk. The resulting strategies are applicable to equity long/short, pairs, basis trading, volatility trading and information arbitrage in the Equity Markets.

  • Optimal directional positioning and asset allocation are determined by a Quorum between the risk scenarios. Identifying these optimal paths through the Risk Landscape ensures that Market Risk is managed.

  • To generate the initial Strategy / Risk Landscape from scratch, dynamic lookback of the trade data and Market data generates the risk parameters for multiple risk scenarios, as opposed to values optimized for a specific query. 

Definitions: 


Risk Scenario -  A current description of individual Trade risk or Market risk.


Risk Landscape - A description of Cumulative Trade or Market risk built from risk scenarios which are defined by current Market states and individual trade risks