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Intalcon Investment Strategies - Performance and Impact Review 2022

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Intalcon's systematic strategies delivered good results in 2022, proving that a systematic approach adds value to the markets.


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.

Return and risk of the US equity strategy compared to the benchmark

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.

Return and risk of the bonds strategy compared to 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 34.5% p.a. have been achieved. Over the same period, volatility was 26.4%, and the maximum drawdown on a monthly basis was 19.6%.

risk return comparison Intalcon vs. benchmarks
Risk/return comparison (5 years)
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.

Our mission "Alpha for Impact" is a win-win model for investors as well as for future generations. Join us on this journey.

Impact of Intalcon Foundation in 2022

The Intalcon Foundation was established in 2020 as a funding body to support the 17 Sustainable Development Goals of the United Nations. It supports non-profit organisations that are globally committed to one or more of the goals and are particularly successful in their respective fields.

Stopping Global Warming

Intalcon Foundation supports Oceans 2050 and its Global Seaweed Project, which primarily aims to store CO2 through seaweed. To date, little attention has been paid to the ability of seaweed to store carbon. Because they grow very fast and don’t require fresh water they are up to 50 times more effective than trees. There are further benefits of seaweed. Besides storing carbon, they also protect against coastal erosion and help to increase the population of fish. Seaweed farms also provide new jobs. They can be used for the production of food, plastics, fuel, or cosmetics. So this projects is not only a good solution to combat the climate crisis.
Learn more about seaweed: https://www.intalcon.com/en/foundation/projects/oceans-2050

Protecting biodiversity

Why do we need to protect biodiversity? Because it enables all life on earth. Without a wide range of animals, plants and microorganisms, we won’t have healthy ecosystems that provide us with the air we breathe, the food we eat, and the medicine we take.
That is why we support the organisation re:wild and in particular a project that aims at the survival of the Saola The Saola is a rare animal that lives in the Annamite mountains in Indochina. That area is one of the most biodiverse locations on earth. Therefore, this project will not only have impact for the Saola, but it will also benefit other species.
Read more about the project: https://www.intalcon.com/en/foundation/projects/rewild-saola

Zero Hunger, clean water, more gender equality

Although they contribute the least, developing countries suffer particularly badly from the climate crisis and its severe consequences, such as heat waves, droughts, floods or pandemics. For this reason, we support the activities of CARE Germany in crisis areas and disadvantaged countries worldwide. The focus is on providing food, drinking water and promoting the independence of women and girls.
Read more about the work of CARE Germany: https://www.intalcon.com/en/foundation/projects/care

More Alpha – more Impact

We are happy to work with these organisations and partly fund their projects, but of course we want to contribute to the achievement of other SDGs.
The more our systematic investment strategies outperform their respective benchmarks and the more financial institutions trust our expertise and rent these strategies or subscribe to funds, the more we can support sustainable projects. Our mission "Alpha for Impact" is a win-win model - for investors as well as for future generations.

Join us on this journey.

Credits

Important Note

The content of this article is for information only. It does not constitute investment advice or a recommendation to buy or sell any financial product. No guarantees or representations are made as to the accuracy, completeness or correctness of the information contained herein. The performance of the Intalcon Alpha for Impact Global Fund shown here represents the net result after deduction of trading costs and fees and after deduction of management fee and performance fee (Net Asset Value, NAV).

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