Philosophy
The market neutral Long/Short Equities strategy employs a highly selective investment approach, focusing on a concentrated portfolio of carefully chosen stocks. These positions are built upon extensive research to identify companies with strong fundamentals and compelling growth prospects. At the same time, the strategy hedges against broader market risk by taking short positions in indices that are expected to underperform. This dual approach aims to limit overall portfolio volatility, attempting to providing a smoother return profile for investors, even during turbulent market conditions.
The strategy strives to achieve steady, single-digit returns on average, aligning with the goal of preserving capital while delivering consistent growth. By actively managing both long and short positions, the strategy aims to balance exposure to market movements, mitigating risks while seeking pockets of alpha. The focus on a limited number of stocks enables deep analysis and conviction in each
investment, while the use of market hedges seeks to protect against broader macroeconomic or sector-specific headwinds. This disciplined approach allows the portfolio to adapt dynamically to changing market environments.
A key differentiator of this strategy is its use of leverage to seek to amplify returns on investment. While the attempted target returns are modest in absolute terms, the leverage component magnifies these gains to generate a higher return on equity for investors. By carefully managing risk and utilizing leverage in a controlled manner, the strategy ensures that the pursuit of high ROI does not compromise the overarching goal of minimizing volatility. This balance makes the Long/Short Equities strategy an attractive solution for clients seeking steady returns with an enhanced potential for growth.
About
Greg Cavallini is a proud graduate of Eckerd College. He began his career by managing financial operations in his family business. Building on this experience, he has spent the past 8 years successfully running an Absolute Long Only Equities Fund. To meet client demand for reduced volatility, he developed a proprietary systematic Long / Short Equities Strategy, allowing the use of responsible leverage to maximize returns. He is currently an independent RIA in the states of Florida and Colorado.
Greg currently lives in Denver with his wife and two children.
Contact
Phone: +1 239 634 9062
Email: Greg@cavallinicapital.com
Address: 10185 Park Meadows Drive. Suite #3
Lone Tree, CO 80124