„RP Vega“ became „RP Gamma“

On September 15th, 2017 the name of the RP Vega fund was changed to RP Gamma.
Following note gives a brief motivation for the name change.

Motivation

The main focus of our fund is the management of gamma risks. As such, by changing the name to RP Gamma we achieve a higher congruity between purpose of the fund and its name.
There are many options-based strategies with strongly varying risk focuses to be found in the asset management industry. Generally, these can be differentiated according to one of the following three main risk focus areas:

Delta-based strategies: delta is the sensitivity of a strategy to price changes in the option’s underlying instrument. The performance of delta-based strategies such as discount certificates, covered call or put write strategies, depends mainly on the development of the delta, which is determined by the directional market evolvement of the underlying instrument.

Vega-based strategies: vega denotes the sensitivity of a strategy to changes in the level of implied volatility. The performance of option strategies with longer maturities or volatility futures based strategies is mainly dependant on vega, i.e. the direction and magnitude of the change in implied volatilities.

Gamma-based strategies: gamma is a measure of how the delta of an options strategy changes when the price of the underlying instrument fluctuates. The risk focus of all strategies that aim at harvesting the difference between realized and implied volatilities is typically the gamma risk. The performance of such strategies is largely independent of the directional market evolvement and will be positive as long the actual market fluctuations are less pronounced than those forecasted by the implied volatility.

 

RP Crest’s asset allocation process: vega-risk reduced gamma participation

Our asset allocation process enables investors to participate in the performance evolvement of gamma. The performance contribution resulting from vega risks are hereby largely neutralised by way of an active risk management process.

The name change to RP Gamma will enhance the profile of our fund and facilitate the positioning of our fund within the heterogeneous and complex asset management world.

For those that follow our fund evolvement via their custody bank’s system our other financial market information platforms, the name change will be without consequence. The ISIN and other identifiers will remain unchanged as will be our asset allocation process.

Risk premiums on capital markets can metaphorically be regarded as ocean waves: they roll in continuously and always come from the same direction, they are, however not always equally strong as they are shaped by the environment and weather conditions. Read more if you are interested in understanding why we at RP Crest chose the image of a surfer as our logo.

In this metaphor, capital market models are the surfboards. For centuries, new materials and designs have improved the sport of surfing, just as research has furthered our understanding of capital markets and risk. As portfolio managers, we see ourselves as surfers riding the waves of the capital markets. Here, as in surfing, what matters most is experience, discipline, training and behaving appropriately in each situation to mitigate risks. As no two waves are alike. Consequently, we do not see ourselves as ‘quants’ following once-established rules, but rather as a team that evolves and adapts to each new circumstance and type of wave while at the same time applying our experience. An inexperienced surfer, even equipped with the best board, will not be able to master the surf. We are an experienced team focused on a single product, the RP Vega fund, through which we capture the volatility risk premium for you.

terms and conditions

Information and conditions of use

Before visiting our home page you have to confirm that you have read, understood and accepted the subsequent legal information.

Please read the following information and conditions of use carefully:

For institutional investors only

Our home page is intended solely for professional investors as defined in the German Securities Trading Act (Section 31a paragraph 2 WpHG), not for private clients. By accepting this information and conditions of use you confirm that you are a professional client.

Disclosure of information, sales restrictions

This website is intended for individuals who are resident in the Federal Republic of Germany. The disclosure of the information contained here and the purchase of shares in funds described here may be prohibited in certain countries. For this reason the information is not intended in any way for individuals or entities in a jurisdiction (based on nationality, current location, residence, place of business or other grounds) in which the publication, disclosure or use of this information would be in breach of applicable law or regulations or in which RP Crest would be subject to registration or licensing requirements and is not intended for disclosure in any such jurisdiction. You must identify and comply with any restrictions of this kind in your jurisdiction yourself. By accepting this information and conditions of use you confirm that you have done so.

Information for US citizens

The information contained on this website is not intended for disclosure in the USA or to US citizens (this relates to individuals resident in the United States of America as well as to partnerships and corporations established under the laws of this country).

No offer

The information and materials provided are for information purposes only and do not constitute a public subscription offer or an offer to sell financial instruments or a solicitation to make an offer to buy financial instruments.

No advice

The information and materials provided are for information purposes only and in particular do not constitute an advertisement, recommendation or financial or other advice. The individual investment objectives, experience, risk preference and financial situation of the users of this website cannot be taken into account. Under no circumstances is this information a substitute for investor- and investment-specific advice. Investments in financial instruments entail risks. Past performance is not a reliable indication of future returns. The sole basis for the purchase of units in investment funds is the respective sales prospectus and contractual provisions in conjunction with the last audited annual report and the half-year report, if more recent than the last annual report, together with the key investor information. These documents can be obtained from the respective management company, depositary or payment agents.

Disclaimer

RP Crest is not liable for loss or damage of any kind or cause due in full or in part to the use of or reliance on this website, failed or unavailable access to this website or websites linked to it or resulting from any action or omission of a third party involved in the creation of this website or the information provided on it, irrespectively of whether the circumstances that led to the loss or damage were within the control of RP Crest or whether RP Crest was aware of the possibility of any loss or damage. RP Crest endeavours to keep the contents of this website up to date and to ensure that they are correct. The contents are based on sources that we believe to be reliable. Nonetheless, RP Crest offers no warranty or guarantee for the correctness, completeness, accuracy, actuality, quality or availability of the contents and the materials displayed on this website.

Copyright

The graphics, documents, video sequences and texts on this website are subject to copyright. They may not be reproduced or used, particularly in other electronic or printed publications, without the written agreement of RP Crest.

Use and disclosure of personal data

To the extent that you provide us with personal data, we only use this data to answer your enquiries. You have the right to revoke your consent with future effect at any time. We do not disclose any of this data to other companies for advertising purposes.

Applicable law and legal validity

This information and these conditions of use, in particular the disclaimer, are to be seen as part of the online offering from which the link to this section was set. If parts or the individual wording of this information should be or become legally invalid, this does not affect the validity or content of the remainder. The websites of RP Crest GmbH are governed exclusively by German law.