Mulvaney Capital Management is an alternative investment manager – CTA that offers an managed futures investment program. This program is meant to provide returns that are high and absolute whether in positive or negative markets. It is able to deliver this commitment using a program that is diversified, systematic, long-term and trend-following. It trades in futures contracts related to financial assets and commodities across the globe.
The program was developed by Paul Mulvaney, CEO and CIO of the firm in 1990. Mulvaney is based in the U.K. It primarily relies on volatility to deliver positive returns that are long term. The firm believes that it is in the volatility of the futures markets where the greatest potential for returns can be achieved.
The Mulvaney Global Markets Program has been proven with 16 years of historical data and has been operating for 10 years with a good track record. Instead of recurring changes that other managers implement for their programs, the firm puts greater emphasis on the integrity of its program. This assures investors that the track record that the firm has achieved over the past years will still be expected when the same system is used in the future.
The firm uses trend following approaches that may not always be efficient but can move gradually to reach fundamentals given time. Using strategies that are diversified, the firm is able to locate trends that are long term from different markets such as interest rates, currencies and commodities. Since the program is created to provide absolute returns, stop losses are based on a downside limitation but not on profit targets. This way the upside potential can be unlimited.
Mulvaney Capital Management is diversified with a portfolio comprised of stock indices, currencies, agricultural, interest rates, metals and energy. Even smaller commodity futures markets, like orange juice are included. This provides investors with more options.
Annualized volatility is at 30.88%. Sharpe (RFR= 1%) is at 0.60. Cpound Annual Return – CAROR is at 16.01%. Assets are at $218 million as of Jan 2015. Worst DD to date is –45.04% and S&P Correlation is at -0.18.
The propriety program for trading of the firm makes trades in futures contracts. These contracts are those that are related to commodities and financial assets across the globe. It has positions in more than 45 markets. It uses a long term approach that identifies trends and holds investments for an average duration of 6 months.
With this perspective, consistency is retained even with short term fluctuations in the market. The program is systematic and relies on prices of the market. It is built to use short and long term positions to generate returns from a wide variety of markets and futures.
The Mulvaney Global Markets Program creates diversity to portfolios that are traditional. Volatility in the portfolio is reduced without sacrificing returns. Returns are also negatively correlated with asset classes that are traditional. The limited capacity fund of the firm provides exposure to even smaller markets, providing an added source of diversity.
With a 14 year track record that has provided desired returns even in the rise and fall of markets, the program has proven its integrity. The program is fully systematic, free from human discretion and provides complete transparency and monthly liquidity.
Mulvaney Capital Management’s basis to the program is that changes in fundamentals happen slowly and in long periods of time. This movement determines the economic system and is proven by past data. Price adjustments that are caused by changes in political, economic or social environments do not occur immediately. These changes occur in rise and falls that represent episodes of volatility. Thus, for an investment program to be successful, it must be able to cope with these peaks and dips while still providing returns.
With a system backed by over 16 years of information, the program developed by Paul Mulvaney is still in use. It is a system that uses breakout trend following. It makes uses of algorithms to recommend entries, exits, correlation in the market and size of the position. The program is completely systematic and is free from human intervention. To determine price movements, the firm uses technical analysis on current events instead of trying to forecast the price. This is done so that each trade is free from human bias.
Key Personnel – Paul Mulvaney
Paul Mulvaney is the Chief Executive Officer and Chief Investment Officer of Mulvaney Capital Management. In 1999, he founded the firm. Prior to the firm, he occupied several positions related to trading of derivatives and foreign exchange at the Midland Montagu, Bankers Trust Company and NatWest Markets. He was also in charge of the Global Foreign Exchange Options and Exotic Commodity Options of Merrill Lynch.
He received his degree in Computer Science & Mathematics, with First Class Honors, from the Manchester University in 1985. He finished his one year program in Management Science, earning him an MSc with distinction, at the Imperial College in London in 1986. His thesis was about computerized arbitrage models for trading of interest and exchange rates.
Alistair Macnaughton is the Chief Legal Officer of the firm. Since 2008, he was part of the firm. He is in charge of providing advice on legal and compliance related matters. He is also the Compliance Officer and Company Secretary. He also has functions in the administration of funds.
Before joining the firm, from 2006 to 2008, he was the Deputy Head of Legal for the Threadneedle Asset Management. From 2005 to 2006, he was a senior legal consultant for the Merrill Lynch Private Client Business in the Middle East and Europe. From 1999 to 2004, he was the European Counsel to the Private Wealth Management business of Morgan Stanley in Europe. He also was part of Gartmore and Lloyds TSB as a senior legal employee.
In 1983, he received his degree with honors in Economics and Philosophy from the University College of Wales in Aberystwyth. In 1986, he received his Master’s degree in Business Law from the Polytechnic of Central London. Also in 1986, he was called to the Bar of England and Wales.
Richard Harris is the Chief Financial Officer of the firm. Since 2009, he was part of the firm. He is in charge of managing the office, human resources and finance functions of the firm. Prior to joining the firm, in 1987, he occupied several positions in the Chartered Bank and ABN Bank. There he was in charge of supporting the Investment Banking and Private Client divisions in a finance capacity. From 2000 to 2004, he became the UK Head of Finance for the ABN AMRO Asset Management. He is a member of the Association of Chartered Certified Accountants.
Mulvaney Capital Management investments requirements are: Management fee is 2%, performance fee is 20% and the minimum investment is $100,000.