Key Takeaways
- • 361 Capital launched the 361 Capital Systematic Index (Bloomberg: 361SI), a rules-based quantitative index employing short- and medium-term trading signals to generate counter-trend equity exposure with daily entry and exit point identification.
- • The Index demonstrates extremely low correlation to major benchmarks, including the S&P 500 Index, Dow Jones Credit Suisse Managed Futures Index, and Barclays Capital US Aggregate Bond Index, based on more than ten years of back-tested data with verifiable performance since 2008.
- • 361 Capital operationalized the Index through the 361 Managed Futures Strategy Fund, available in Class A shares (AMFQX) for retail investors and Class I shares (AMFZX) for institutional audiences, launched in 2011 to track the Systematic Index.
- • The Denver-based firm positioned the strategy as a systematic alternative to traditional equity exposure, addressing institutional demand for low-correlation portfolio diversification in a period of elevated market volatility.
- • 361 Capital maintains a diversified alternative investment platform, including the 361 Absolute Alpha Fund (multi-manager market neutral) and the 361 Long/Short Equity Fund, serving major institutions, financial intermediaries, and high-net-worth investors.
Summary
361 Capital, a provider of alternative investment portfolios to institutional clients and high-net-worth investors, has introduced the 361 Capital Systematic Index, a quantitative methodology designed to systematically generate technical indicators against price and volume trends in equity markets. The Index employs a proprietary quantitative model that identifies optimal entry and exit points for long and short equity market exposure on a daily basis, utilizing a combination of short- and medium-term trading signals derived from broad equity market analysis.
The strategy's investment framework centers on a counter-trend approach to equity management, differentiating it from traditional momentum-based strategies. According to Brian Cunningham, President and Chief Investment Officer of 361 Capital, "Given the nature of our model, the historical returns of the 361 Capital Systematic Index have an extremely low correlation to the general equity markets. As a result, we believe the Index provides investors with an excellent tracking mechanism to a systematic counter-trend equity strategy."
Performance analysis supports the low-correlation thesis. The Index carries more than ten years of back-tested data with verifiable returns since 2008, demonstrating minimal correlation to the S&P 500 Index, the Dow Jones Credit Suisse Managed Futures Index, and the Barclays Capital US Aggregate Bond Index—characteristics that appeal to institutional investors seeking portfolio diversification benefits during periods of elevated equity market correlation.
To operationalize the Index, 361 Capital launched the 361 Managed Futures Strategy Fund in 2011, offering both Class A shares (AMFQX) for retail audiences and Class I shares (AMFZX) for institutional investors. The Fund seeks to track the 361 Capital Systematic Index while providing tactically-managed futures exposure. This product launch follows 361 Capital's longer tenure managing alternative strategies; the firm notes it has been "building and managing alternative investment portfolios for well over a decade." The firm's broader alternative platform includes the 361 Absolute Alpha Fund, a multi-manager market neutral offering, and the 361 Long/Short Equity Fund, an actively-managed long/short equity strategy, underscoring its positioning as a diversified alternative asset manager serving major institutions, financial intermediaries, and high-net-worth investors.
The strategy's investment framework centers on a counter-trend approach to equity management, differentiating it from traditional momentum-based strategies. According to Brian Cunningham, President and Chief Investment Officer of 361 Capital, "Given the nature of our model, the historical returns of the 361 Capital Systematic Index have an extremely low correlation to the general equity markets. As a result, we believe the Index provides investors with an excellent tracking mechanism to a systematic counter-trend equity strategy."
Performance analysis supports the low-correlation thesis. The Index carries more than ten years of back-tested data with verifiable returns since 2008, demonstrating minimal correlation to the S&P 500 Index, the Dow Jones Credit Suisse Managed Futures Index, and the Barclays Capital US Aggregate Bond Index—characteristics that appeal to institutional investors seeking portfolio diversification benefits during periods of elevated equity market correlation.
To operationalize the Index, 361 Capital launched the 361 Managed Futures Strategy Fund in 2011, offering both Class A shares (AMFQX) for retail audiences and Class I shares (AMFZX) for institutional investors. The Fund seeks to track the 361 Capital Systematic Index while providing tactically-managed futures exposure. This product launch follows 361 Capital's longer tenure managing alternative strategies; the firm notes it has been "building and managing alternative investment portfolios for well over a decade." The firm's broader alternative platform includes the 361 Absolute Alpha Fund, a multi-manager market neutral offering, and the 361 Long/Short Equity Fund, an actively-managed long/short equity strategy, underscoring its positioning as a diversified alternative asset manager serving major institutions, financial intermediaries, and high-net-worth investors.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.