Our Approach to Investing
What We Do
At Crabel, we strive to extract alpha from persistent, explainable market anomalies and provide a diversified investment experience. We use our decades of experience in research, technology, and quantitative short-term trading to quantify market observations, turn opportunities into ideas, and make technological enhancements to our execution infrastructure.
Overview: Building Valuable Programs
Crabel has developed several unique absolute return programs that seek to offer liquid, transparent, and diversified investment options.
At Crabel, we recognize that alpha decay is real. We maintain a continuous state of improvement to keep up with the constantly evolving financial landscape. Unique idea generation and ongoing technological enhancement are critical components to our success.
Trade execution efficiency is paramount in executing on our investment theses. At Crabel we invest heavily in our industry-leading proprietary execution infrastructure to reduce cost (slippage) and capture alpha.
Our trading strategies begin with a single idea or insight into the market. From there, we explore new portfolio designs and develop new technologies with a careful, thoughtful, and scientific approach.
We seek to identify persistent market anomalies across a wide range of instruments while carefully managing downside risk. We then employ a rigorous testing methodology for each and every trading idea.
The marketplace judges us on our ability to continuously improve how we invest. Our experienced research team never stops searching for novel ways to elevate our strategy research, algorithmic execution development, and technological integration.
As a systematic asset manager, we incorporate risk management into the strategy and overall portfolio designs and apply it in an automated fashion. Each portfolio has an annual volatility target to establish the risk budget as well as multiple levels of risk controls at both the position and portfolio levels.
Trading & Execution
In the short-term arena, advanced trade execution is paramount. We focus on low-latency algorithmic trading and measure execution speeds in microseconds. Execution costs can erode alpha, and we are extremely mindful of keeping these costs low.