Who We Are
Royal Highland Advisors, LLC is a private wealth management investment firm based in Wisconsin. We specialize in both managed equities, bonds, options, commodities and financial futures investments. We seek to generate exceptional returns over both a short and medium-term investment horizon. Our trading philosophy follows a rigorous and disciplined investment process based on fundamental and technical algorithms. All funds are open for Audit (Lawyer/CPA) to prospective investors. We follow SEC guidelines in that investors must show a net worth of $1 Million or an income of $200,000 over the last two years.
Fund Performance 2018
Fund performance for 2018 has exceded the benchmark indicator for yet another year. Although, this was not one of our best years trading volatility our algorithms driving the returns showed they can be better at predicting future returns than human emotions. This, of course, is assuming the investor/trader were to stay with the trade and not allow the the drawdowns of the market to play on the humans mind and mental processes. We believe that 2019 is setting up to be a good year for trading volatility.
Fees: We employ a 2 and 20 fee compensation structure. All funds require a minimum investment of $100,000.
Our History: Royal Highland Advisors, LLC has been examining the capital markets in both an empirical and behavioral setting since 1997. The results of our research have been published in the top-tier of academic journals. Years of backtesting have provided the foundation knowledge for designing algorithms in which to generate exceptional returns for investors.
How We Are Different: Most Hedge Funds use a shoot-from-the-hip investment style i.e. Hedge Funds put all their eggs in one basket and hope for the big payoff. This approach, in turn, explains their poor performace. We, however, are different from the typical Hedge Fund in that Royal Highland makes use of derivatives to limit market volatility. Stated differently, we define our risk via the use of derivatives thus limiting investor loss. This unique approach allows our funds to prosper when the market moves up, moves down, or is in a directionless/consolidating state. These funds may suffer drawdowns during reversing directional trades..
The St. Andrews Fund
The St. Andrews Fund is a Hedged Convexity Capture fund. The idea behind Hedge Convexity Capture is to benefit from the path dependent negative convexity that is present in many leveraged futures products. This fund trades the VIX Short and Mid-Term futures.
The Letham Angus Fund
The Letham Angus Fund is also a Hedged Convexity Capture fund. The idea behind Hedge Convexity Capture is to benefit from the path dependent negative convexity that is present in leveraged futures products. This fund trades the VIX Short and Mid-Term futures, however, unlike the St. Andrews Fund, The Letham Angus only takes short positions in the Short and Mid-Term futures.
The Balmoral Fund
The Balmoral Fund is also a Hedged Convexity Capture fund. The idea behind Hedge Convexity Capture is to benefit from the path dependent negative convexity that is present in leveraged futures products. This fund trades the VIX Short and Mid-Term futures, however, unlike the St. Andrews Fund and The Letham Angus Fund, The Balmoral Fund only takes short positions and is protected by an additional cash hedge thus further limiting investor loss.
Phil McKnight BSBA, MBA, CPFP, PhD. Managing Principal: 20 Years Experience. Specialization: Quantititve finance, algorithm development (C++/EL), derivatives pricing and financial risk management, asset valuation, alternative investment strategies.
Address: PO Box 183, Beaver Dam, Wisconsin, 53916
Phone: 920 319-1444
email: firstname.lastname@example.org (alumni and friends)
email: email@example.com (alumni and friends)