Investment Process

Our investment process consists of four components:

1. Research: Equinox uses proprietary and commercial databases as well as analytical tools to identify investment programs that may be suitable for inclusion in our products. These databases and tools are supplemented with informal investment community contacts and networks.
2. Evaluation: Equinox uses quantitative and qualitative processes to evaluate trading programs for possible inclusion in the products. Equinox applies a variety of analytical and statistical methods in its selection process, while also relying on rigorous in-person due diligence.
3. Fund Portfolio Design: Equinox analyzes the interrelationships among the selected trading advisors and investment programs. The contribution of each program to various hypothetical portfolios is assessed. The aim of the process is to develop a portfolio of investment programs that offers more consistent performance potential with less volatility than that of any individual investment program.
4. Risk Management: To ensure that investment objectives are being achieved within stated risk parameters, Equinox monitors leverage, volatility, market sector exposure, losses from peak profit levels, and frequency of trading activity.