X-Chequer CTA Fund

The X-Chequer CTA Fund is a Quantitative Trend Following strategy. At the core of the X-Chequer CTA strategy is the understanding that no trends are ever “straight line” one-directional movements. There are always large movements, both positive and negative, around any single trend.

The CTA strategy looks to trade the main direction of a trend as well as the movements around this trend. This is done through the application of five trend indicators to the trend.


Each is traded independently of the others based on the trading parameters that are applied. This strategy ensures that the Fund always has multiple entry and exit points into the trend and ensures that the Fund’s net exposure to any one trend, whether positive or negative, is optimised to the specific trend.

CTA strategies may be affected by prolonged periods in the market where all the CTA trend indicators are “untraded” leaving a pure CTA strategy with no positions in the Fund for an extended period.

To counter this and to diversify the Fund and reduce volatility a fixed (40%) capital allocation is made to a Hedged momentum strategy to provide the Fund continuous exposure to single stocks with defined momentum characteristics.


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It is primarily invested in the South African stock market, employing a long/short strategy. Very limited uses of futures are made to hedge out market risk.

The Fund combines a bottom-up stock picking process with various proprietary tools to construct the portfolio. Fundamental analysis is key to identifying investment opportunities.

This Fund discerns itself by that it may from time to time have a more aggressive directional equity exposure depending on our view on the market. Smaller market capitalisation stocks are invested into but still with limited exposure as per the mandate. Shorter term trading opportunities could be more aggressive for the Fund which may add to returns. Position sizes tend to be bigger to better express high conviction views. The Fund aims to deliver a net return of two to three times SA cash rates.


To contact us for more information on our Fund offerings please click here