Investment Advisors

Investment advisors have an interest in delivering attractive risk-adjusted returns to their clients. Aeon has created a range of diversified, risk-controlled investment strategies that deliver desired asset class exposures with less risk than traditional “buy and hold” investment strategies.

Returns come easily when markets advance, making it difficult for investment advisors to differentiate themselves. However, few investment advisors adequately protect their clients when markets decline. Working with Aeon Funds provides investment advisors with the opportunity to enhance their value proposition by better protecting their clients in difficult markets.

Investment Process

Aeon employs robust trend following systems to a wide range of markets.

Proprietary algorithms carefully monitor price movements and make investments only after a trend has been established. Holdings remain in the portfolio for as long as the trend remains in tact. Positions are liquidated once the trend has reversed.

Profit potential stems from continuing trends that are significant enough in frequency and magnitude to outweigh losses from trend reversals. The investment process continually allocates capital away from poorly performing assets and into performing assets.

All strategies enjoy broad diversification, unparalleled adaptability and rigorous risk mitigation.

Investment Strategies

US Equities (Long Only) - Trend following systems applied to liquid, publicly traded US stocks. The strategy dynamically allocates between US stocks and cash based on market conditions. Exposure to equities will increase when markets advance and will decrease when they decline. The goal is to deliver the returns of the US stock market with less downside risk than “buy and hold” alternatives such as mutual funds and index funds.

US Equities (Hedged) - Trend following systems applied to liquid, publicly traded US stocks. The strategy rotates between US stocks and cash based on market conditions. Additional downside protection is gained through use of a proprietary indicator that detects overall market risk by measuring the relative performance of portfolio constituents.  When significant, wide-spread risks are signaled, Aeon will lower the portfolio’s market exposure.  Exposure to US stocks will increase when markets advance and will decrease dramatically when they decline (this feature proved particularly useful in 2008). The goal is to approximate the returns of the US stock market with significantly less downside risk than “buy and hold” alternatives such as mutual funds and index funds.

 
Alternative investment products involve a high degree of risk, often engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop. There may be restrictions on transferring interests in any alternative investment. Alternative investment products often execute a substantial portion of their trades on non-U.S. exchanges. Investing in foreign markets may entail risks that differ from those associated with investments in U.S. markets. Additionally, alternative investments often entail futures and options trading, which involves substantial risk of loss. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
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Aeon Funds is a division of Aeon Capital LLC, a Registered Investment Advisor with the State of California and Commodity Pool Operator with the National Futures Association
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