Intalcon's systematic strategies, which combine trend-following and mean-reversion elements with strict risk management and are mainly based on price data, delivered good results in 2022, proving that a systematic approach adds value to investment portfolios. A particular highlight was the performance of the Intalcon Alpha for Impact Global Fund: with an annual performance of +36.9%, the hedge fund further outperformed all benchmarks.
Intalcon US Equities ESG Systematic
This investment strategy, a long-only strategy that trades the largest stocks in the S&P 500, delivered a return of -1% for the full year 2022, outperforming its volatility-adjusted benchmark (60% S&P 500 Top 50 Price Index) by 9.1 percentage points. On a 3-year basis, the strategy's Sharpe Ratio is thus 0.94 while the benchmark's Sharpe ratio is just 0.43.
Intalcon Global Bonds Systematic
This long-only strategy trades 14 highly liquid Treasury futures and suffered a loss of 17.7% in 2022 due to the historic slump on global bond markets. As a result, the strategy's performance lagged the benchmark WGBI DM ex JPY by 5 percentage points. On a 3-year basis, Intalcon's bond futures strategy has a Sharpe ratio of -0.56, compared to -0.60 for the benchmark.
Intalcon Global Equities Systematic
This long-only portfolio comprises 10 highly liquid equity index futures from the U.S., Europe and Japan. The rule-based investment strategy closed the negative equity year 2022 with a small loss of 4.1%, outperforming its volatility-adjusted benchmark by 2.1 percentage points year-on-year. On a 3-year basis, the strategy's Sharpe ratio is 0.62, while the benchmark's equivalent is 0.38. Further information on all Intalcon strategies can be found here.
Note: All data as of 12/31/2022. Results are calculated in EUR. Trading costs have been included, but not our management fee and performance participation.
Intalcon Alpha for Impact Global Fund
Despite historically high declines in the equity and bond markets, the Intalcon Alpha for Impact Global Fund generated above-average returns of +36.9 % in 2022. And this is, by no means, just a positive outlier. Over the past five years, similar returns of around 30.88 % p.a. have been achieved. Over the same period, volatility was 26.4 %, and the maximum drawdown on a monthly basis was 19.6 %.
The Intalcon Alpha for Impact Global Fund achieved a Sharpe Ratio of 1.3 over the last 5 years, outperforming all major benchmark indices by a wide margin.
The combination of active, rule-based long/short strategies, strict risk management and maximum diversification on the asset, strategy and time scale delivers clear added value - regardless of the market situation. For example, over the last 5 years, the Intalcon Alpha for Impact Global Fund shows minimal correlation to the equity market (0.03), bond market (0.10) and commodity market (0.06). More information on the Intalcon Alpha for Impact Global Fund can be found here.
From high returns to measurable impact
The actual purpose of the fund and all systematic strategies of Intalcon is to finance sustainable projects. Therefore, a large part of the rental fee, performance fee and management fee - via the non-profit Intalcon Foundation - goes to measures to slow down global warming, to the protection of endangered species and to projects that improve living conditions in low-income countries. The fund thus makes a direct impact and is, so to speak, a hedge against the greatest threats of our time.
Doing good with good returns. the fund as well as all Intalcon's strategies show that it is possible to grow your capital, keep liquidity and support Impact in a meaningful way. We ask that you too become part of our "Alpha for Impact" mission.
