We have developed, devised and launched a new active, risk-managed, long-short investing strategy and portfolios of stocks and options to:
XoomFi Investment Models offer premium income generation and equity appreciation while also providing intrinsic downside protection. While our screeners select stocks and options with higher implied volatility, the inversely correlated stocks and options trades and how we manage and balance the portfolio have helped us manage risks while lowering the portfolio beta and deliver superior Alpha.
July 1, 2022 to March 31, 2024 (7 Calendar Quarters):
Outstanding Returns AND Stellar Alpha Generation:
The XoomFi Portfolio's 39.07% Total Return - 22.32% Annualized Return - ranks it very high and places it in the 99th Percentile:
Q1, 2024:
Stellar Returns AND Stellar Alpha Generation:
The 17.06% Total Return - 69.19% Annualized Return - generated by XoomFi Portfolio places it in the 96th to 99th Percentile of all the funds tracked by MorningStar:
Risk Analysis & Benchmark Comparisons:
While SPX is the primary benchmark for comparison for our long-short strategy, we do extensive comparisons with a broad array of investment instruments:
Over 7 Calendar Quarters starting July 1, 2022, the XoomFi portfolio has outperformed all these benchmarks in generating Alpha:
Check out the Benchmarks tab for detailed and comprehensive Total Return, Risk Analysis, and other benchmark comparisons on Quarterly basis and since July 1, 2022 when we first offered XoomFi Model Portfolio to prospective investors.
About XoomFi Advisors:
We - https://www.XoomFi.com - are based in San Jose, CA. The principals in our firm have more than 30 years of stocks and options trading experience combined with broad and deep experience in the Tech sector and Venture Capital industry.
We are a Registered Investment Advisor (RIA) - SEC Registration # 314872 SEC File # 801-121438.
Our Risk-managed Long-Short Investment Strategy is designed to:
It’s an attractive and compelling option for:
Over the past 7 Calendar Quarters since July 1, 2022 - when XoomFi Portfolio was offered for the first time to prospective investors, XoomFi has delivered excellent returns - 39.07% Total Return / 22.32% Annualized Return - placing it in the 99th Percentile of all funds tracked by MorningStar, but, more importantly, it has delivered Superior Alpha : 9% Alpha or Excess Return on Risk-adjusted basis compared to SPX and >5% relative to ALL benchmarks
Visit the Benchmarks tab to check out comprehensive dashboard of Total Return, Risk Analysis and Benchmark Comparisons against market indexes, and leading Equity, Bond, Sector, Covered Call and Momentum funds & ETF's.
Management Fee = 0.25% of Assets Under Management (AUM) each quarter
At XoomFi, we have developed and implemented a new and unique long-short trading strategy and a strategy that relies on a long-term market perspective and short-term adjustments.
Unlike most fund managers who have a naturally bullish or bearish bias and who then attempt to will the market to move in their preferred direction, we have the humility to know that no matter how hard we try we will not be able to will the market to move in a specific direction.
We have adopted a radically different approach which is a lot more nimble and one that lends itself to respond favorably to the frequent and volatile changes - up or down, bull or bear, growth or value.
We have developed a set of core beliefs and guiding principles based on our experiences - core beliefs which make XoomFi unique and different. These core beliefs are:
These core beliefs have been incorporated into everything we do - our philosophy, our trading strategy and plan, selection of positions, entry / exit points.
There is a truism in the business world that Change is the only constant. The analogous truism for trading in the equity market is: Volatility is the only constant.
Whether the volatility in the market or individual security is driven by market forces, geo-political or other exogenous forces, or induced by the Fed - Federal Reserve Bank or the Federal Government - (subject of a separate blog post), we believe volatility needs to be factored into every trading strategy.
Embrace Volatility
We have actually gone one step beyond just factoring Volatility into our strategy - we have embraced it as an integral component and driver of our trading strategy. For the three model portfolios- Balanced, Turbo and Ultra - we use volatility as the filter in the stock scanner to identify the securities for the Watch List, Select Few and investments for each of the model portfolios.
The Volatility Paradox
It may seem paradoxical that our long-short strategy which embraces Volatility actually has lower volatility and lower risk compared to trading stocks and consequently lower beta and has helped us deliver superior Alpha.
Think Global but Act Local has an analogous phrase in the XoomFi parlance : Think Long, Act Short.
At XoomFi, we have the humility to know and accept that try as we might we are not going to be able to will the market to move in a specific direction. Our approach is to develop a long-term - 2 to 3 year - view of the market to establish the long positions and then make short-term course adjustments.
These short-term adjustments have enabled us to be a lot more nimble and opportunistic in responding to the market conditions and volatility and to deliver market-leading performance through different cycles - bull or bear, up or down, growth over value.
Stock options and their price action relative to the price of the underlying stocks are determined and measured by the Greeks - Alpha, Beta, Delta, Gamma, Theta and Vega.
XoomFi trading strategy and algorithms, scanners, stock and options selections, entry / exit points, and the system factor in and leverage the Greeks:
To deliver superior Alpha relative to major market indices and other investment options…
Identify and invest in high Beta stocks…
While embracing Vega as the key driver of our investment thesis…
With Delta and Gamma as our guides to manage the portfolio risks…
… and with Theta as our ally
Our Long-short trading strategy with inversely correlated positions offers inherent downside protection and consequently, lower left-tail risk. In an environment in recent times when we have seen elevated levels of volatility and with our trading strategy which embraces volatility, managing the left tail risk becomes even more crucial.
In recent times, we have witnessed much higher volatility and much larger swings in the market driven by a variety of macro and micro factors, geo-political forces, monetary and fiscal policies.
Some of these factors - like the Covid pandemic in 2020, global depression in 2008, 9/11 in 2001 were 'black swan' events which had gut-wrenching and traumatic impacts on the global markets.
All XoomFi model portfolios are protected at all times against such unexpected and unanticipated 'black swan' events and associated left tail-risk with appropriate hedges.
This Program Brochure (this “Brochure”) provides information about the qualifications and business practices of XoomFi. If you have any questions about this Brochure’s contents, please contact us at the above phone number and / or e-mail. The information in this Brochure has not been approved or verified by the United States Securities and Exchange Commission (the “SEC”) or by any state securities authority.
This Brochure is for informational purposes only. It does not convey an offer of any type and is not intended to be, and should not be construed as, an offer to sell, or the solicitation of an offer to buy, any interest in any entity, investment, or investment vehicle.
XoomFi Part 2A Firm Brochure_July_14_2023 (pdf)
DownloadXoomFi Advisors - SEC Registration # 314872 SEC File # 801-121438
111 N Market St, Suite 300, San Jose, CA 95113
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