Chesapeake Capital Corporation Profile
Chesapeake is a managed futures investment manager and CTA. It is based in Richmond, Virginia and was founded in 1988 by R. Jerry Parker Jr. The goal of Chesapeake is to provide management services of investments and portfolios to investors both private and institutional across the globe. In 1983, Parker began his career in portfolio management as part of a select investment training program called “Turtle Program.” This was developed by the Chicago portfolio manager Richard Dennis.
After 5 years into the program, in 1988, Parker left his trading of proprietary capital to pursue his career by forming Chesapeake. His firm’s investment approach was specialized in such a way that it offers investors the opportunity to participate and profit from price trends that are not usually available in portfolios strategies which were traditional.
The firm has a portfolio that is unbiased towards short and long positions. With this strategy, profit can still be made from both the rise and fall of market conditions. With over 90 markets, Chesapeake monitors and participates in global trading. Some of the classes are tangible assets, such as gold, crude oil and coffee. Trading is also done on global financial instruments such as German government bonds, global currencies and US stock indices.
With a diversified portfolio and a specialized investment style that is not correlated to traditional approaches, the firm can increase the portfolio returns for the clients and at the same time decrease volatility. Since 1988, the firm is registered both as a commodity trading advisor (CTA) and since 1991 a commodity pool operator (CPO) with the Commodity Futures Trading Commission (CFTC). Since 1988, it has been a member of the National Futures Association.
Campbell uses a systematic and long-term trend following program. It was founded on February 1988. As of December 31, 2014, the firm’s AUM is $255 million. It is located in Richmond, VA. Principals are R. Jerry Parker Jr. and Michael L. Ivie. In 1991, it was merged into an Illinois corporation.
Goals in Investment
The goal of Chesapeake is to maximize profit through the use of a system that follows entries and exits in varying market conditions and temptations. It aims to seek preservation of capital and provide positive returns every year.
Global trading is done in over 100 markets; this includes commodities, currencies, stock indices and interest rates. The portfolio aims to have a 50-50 exposure between physical commodities and financial futures markets.
The methodology of Chesapeake in trading is the use of trend following that is long term. It uses trading systems that are applied into a wide range of markets. The Classic Trend Following is used by focusing on the preservation of capital and the attempt to give annual returns that are positive. Regardless of the market conditions or temptations, the goal is to maximize the profit using entries and exits of the system.
The firm believes that in using these trend following systems, it can minimize the potential for curve fitting. Through the use of minimal parameters such as filters and conditions, the firm can position itself even in conditions that are new to the market. Risk is capped at the market, sector and portfolio level.
The firm also believes that there is difference between the risk of capital loss and volatile returns of investment. The firm is focused, single-minded and consistent in its approach. It is dependable with frequent positive returns.
R. Jerry Parker, Jr.
R. Jerry Parker, Jr. is the Chairman of the Board and CEO. Since its inception, he has been at the helm of its operations and trading. In 1980, from the University of Virginia, he received his B.S. in Commerce. From 1983 to 1986, he was an exempt commodity trading advisor at the Richard J. Dennis & Company in Chicago as part of the Turtle Training program. In 1988, he formed Chesapeake.
Michael L. Ivie
Michael L. Ivie is the Director of Research. In 1989, he graduated with a B.S. in Mathematics from the Louisiana State University. In 1991, he joined Chesapeake as part of its Research Department. His responsibilities were development of trading systems and back office software operations. In 1999, he occupied his present position.
1988 to 2014 Performance Statistics
Chesapeake has a cumulative total return of 2200.04%. Annualized compound return is at 12.35%. Annualized standard deviation is at 20.39%. Monthly correlation to S&P 500 TRI is at 0.14. Annualized sharpe ratio (0%) is at 0.67. On May 2010 monthly maximum loss is at -18.29%. From April 2011 to December 2012, there is a maximum drawdown of -31.57%.