Richmond Optimus

Your Money, Our View

About Richmond Optimus, LLC

Richmond Optimus is an Alternative Investment Manager and Managed Futures Advisor. Richmond Optimus, founded in 2001 (formerly Richmond Capital Corporation), is registered as a 4.7 Exempt QEP. Commodity Trading Advisor (“CTA”) and Commodity Pool Operator (“CPO”) with the Commodity Futures Trading Commission (“CFTC”), and is a member of the National Futures Association (“NFA”). 

Richmond Optimus is a quantitative global macro hedge fund and currency asset manager. Each program strives for high levels of portfolio diversification. Richmond Optimus utilizes a broad spectrum of worldwide futures contracts, global currencies, and forward contracts on currencies, agricultural commodities, energy products, interest-rates, metals, single stock futures, and stock index futures for its trading programs. Our goal is to provide superior risk adjusted returns, which are non-correlated to those of equity and fixed income investments, for its clients through the Richmond Global Index. Richmond Cash Management/Equity Finance fixed income strategy, Richmond Cash Management/Equity Finance leveraged fixed income strategy, Richmond Mega-cap (equity-beta) Single Stock Futures strategy, Richmond Global Macro (diversified) strategy, Richmond Global Index Multi-manager strategy, and Richmond Multi-Strat (Combined-strategic allocation to all strategies).

The principals of Richmond Optimus have substantive and extensive industry experience in trading, portfolio management, institutional class asset management, portfolio construction, academic research, advising global and national leaders on monetary policy and global macroeconomics.

Our portfolios of alternative investment fund structures can act as a diversifier to your portfolio providing lowly correlated and strong absolute returns that are daily liquid. Sector agnostic, our strategies are un-biased as to market direction, assets, and any one investment sector. We believe that our strategies can make much economic sense for Family Office, Private Equity, M&A, Corporate Finance, Infrastructure and Media-Entertainment. Investors in our Richmond strategies, through our clearing partners, can purchase structured products that are linked to the returns of any Richmond strategy via principal protected notes, cash management facilities via custodian, total return swaps and more.

Bob Marcellus – Portfolio Manager

Mr. Marcellus began a career back in 1987 that has seen him trading for his own account, managing a retail brokerage operation, providing research and trading recommendations as an analyst to retail clients, designing trading models, managing institutional client accounts as a “proprietary trader” to present day advising well known global institutions through the various investment vehicles and strategies belonging Richmond Optimus, LLC.

Strategy Descriptions

Richmond Global Index

The investment objective of the Richmond Global Index is to seek long-term capital appreciation via the combined returns of a highly diverse set of asset managers. The component managers of the Richmond Global Index are selected from a universe of highly experienced Commodity Trading Advisors, Global Macro Managers, Currency Managers, Fixed income, and Equity Hedge Fund Managers.

Individual performance characteristics of the selected underlying managers of the Index typically exhibit a negative correlation to traditional equity (S&P 500) and fixed income markets as well as a history of quality risk adjusted returns over varying market conditions. The Richmond Global Index further strives to maximize performance and diversification by selecting managers in a deliberate and ongoing process that:

  • Trade in a highly diverse set of global markets
  • Diversify their strategies by time frame
  • Diversify their trading philosophies by system and style
  • Identifies managers via Richmond’s proprietary modeling of their contribution to the overall portfolio as “alpha-generators” and “downside deviation controllers”.

Richmond Cash Management / Equity Finance fixed income strategy

Utilizes 100% hedged and ‘offset’ spread transactions in global equities backed by the AA+ credit rating of the Options Clearing Corporation [ OCC] and the NYSE DTCC clearing systems.

The fixed income strategy is a short term, daily liquid (intra-day liquidity), fixed income strategy.  The yields, though known at the time of trade inception, are not guaranteed to be constant throughout the year but have typically averaged 25%-75% greater than the 30-day US T-Bill rates.  

Richmond Cash Management / Equity Finance Leveraged fixed income strategy

A 'leveraged' version of the above strategy.

Richmond Mega-Cap (equity-beta) Single Stock futures strategy

The Richmond Mega-cap (equity-beta) Single Stock Futures strategy benefits from Richmond’s proprietary models with the caveat that only traditional Large Cap stocks are traded in this strategy via exposure to the dually regulated (CFTC & SEC) Single Stock Futures listed on the OneChicago and EUREX exchanges. The Single Stock Futures provide for delta-1 exposure to the underlying equities in a much more cash efficient futures contract environment and structure as opposed to traditional cash equity markets.  This program more closely correlates to the S&P 500 compared to the negatively correlated (to S&P 500) Global Macro, Global Currency, and Global Index programs.

Richmond Global Macro (diversified) strategy

The Richmond’s Global Macro strategy is a proprietary strategy employing both long and/or short positions with no directional bias. The proprietary and confidential technology is quantitative, technical and trend following in nature and is systematically applied to all markets traded within the portfolio. The targeted time frame is “short” to “intermediate” term in nature. The average winning trade is 22 days and the average losing trade is 6 days. The average holding period of all trades is approximately 11.5 days. Multiple time frames are referenced for our systems and models’ data inputs. There are also some limited elements of discretion employed with regard to the implementation of the markets traded and risk allocation per sector and market. Richmond considers itself to be 90% systematic and 10% discretionary in terms of its management philosophy. While past performance is not indicative of future performance, Richmond has experienced significant positive returns in periods of market stress in 2008 and other ‘risk events’.

Richmond Global Index Multi-manager Strategy

The Richmond Global Index Multi-Manager strategy a highly diversified and lowly correlated to equity and fixed income markets program that allocates to Richmond’s Global Macro Program and 10-15 independent global macro, currency, and commodity asset managers. The Index is accessible via the dbSelect platform (Deutsche Bank AG) and is designed to be a lower volatility product compared to any one single manager. The allocations to the underlying managers are made on an equally weighted basis and Richmond’s proprietary algorithms help to guide the selection. The index is designed to have a very low annual turnover of managers. Virtually all the managers currently selected to our index were profitable in the 2008 crash environment (as was Richmond Global Macro) which makes the index lowly correlated in addition to having lower volatility targets than the single manager strategy.

Richmond Multi-strat

A combined, balanced, strategic allocation to all Richmond strategies above.

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