Risk Parity

Titan has been engaged by Wilshire to become an execution partner for their Risk Parity Index.

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Titan has been engaged by Wilshire to become an execution partner for their Risk Parity Index.

Titan will execute a solution based on Wilshire’s Risk Parity Index through its Commodity Pool Operator “CPO” affiliate known as “Titan Co GP, LLC”. Wilshire’s Risk Parity Index was added to the HFRI Risk Parity Index in 2019, with the announcement that the Public Employees Retirement Association (PERA) of the State of New Mexico was implementing an allocation of 10% to a Risk Parity Strategy based on Wilshire’s Index.

Wilshire is uniquely positioned in the construction of indices, with their intellectual capital and history in index construction, which differentiates them from other players that are hedge fund firms or asset managers. Wilshire’s market position also comes with several benefits for those that would like to allocate to the Wilshire Index but do not have the in-house resources to implement the strategy. Wilshire provides trade allocations and weights to each index component but does not execute the index for clients.

Titan plans to provide two execution options through its relationship with Wilshire, including separate accounts for large investors and a commingled fund vehicle formed for smaller allocators. These two solutions will allow allocators of all sizes outsourced access to the Wilshire Risk Parity Index.

Titan Risk Parity Solution

Unparalleled transparency through secure web access to live trade blotter, P&L and positions
Expertise in trading and managing large trade flows
Access to strong analytics in Python and the Titan Custom Site.
Strong Risk Management
Seamless Trade processes
Outsourcing of operations and accounting
Detailed reporting (attribution, risk, leverage) and portfolio and market commentary
Client Web access to proprietary database and analytics platform

Analytics were developed in Python to determine:

  1. Optimal futures rolls – trade timing predicated on market drivers, which included seasonality, market positioning, asset managers, CTAs, index rebalancing and other major market moving flows.
  2. Relative value metrics based on – security liquidity, relative funding, inflation asset swap curve, and real rate curve shapes, to optimize the TIPS/inflation exposures. Total return swaps on the Wilshire TIPs index, the components of the Wilshire TIPS index, or a customized basket of TIPS that match the Wilshire TIPS Index stipulations will be used, based on their relative value.
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