Investors have a need to participate in public markets in a way that preserves capital, minimizes the probability of loss, and generates stable returns, both over good and bad times in the economy, and that’s exactly what our fund is designed to do.

Michael Valicek, Vice President & Senior Investment Analyst

Approach

Vukota integrates a proprietary mix of fundamental and quantitative factors with disciplined decision making to construct public market portfolios that generate stable risk-adjusted returns while prioritizing preservation of capital.

Conventional balanced public-market portfolio strategies generate returns during rising markets but destroy wealth during market declines.

Vukota’s multi-strategy mandate was developed coming out of the last downturn. The strategy combines diversified, less correlated return sources, which provide stable returns across contrasting market environments.

VPM’s flagship product, the “Vukota Multi-Strategy Fund”, takes tactical positions in equities, equity options and futures, commodities, currencies, and bonds, to create an ideal portfolio exposure profile for a given moment in time.

Process

Vukota Capital uses a disciplined investment process that integrates proven techniques including rigorous top down and bottom up fundamental analysis, market sentiment and technical analysis, and prudent risk management, to achieve strong investment returns.

Top-down asset allocation

Diversification and portfolio correlation are key considerations

Idea Generation

Research Process and Investment Strategy

Portfolio Construction

Execution

Risk Managment

The Multi-Strategy Fund methodically assembles and dynamically refines its portfolio to generate an optimal risk-return profile, using the following securities types:

Long and short equities

Equity options

Index options and futures

Currencies

Commodities

Government bonds

Vukota employs these strategies to target steady, positive returns, to build a thoroughly diversified, less correlated portfolio, and to protect wealth through reduced market exposure.

Vukota screens and selects core equity holdings based upon a time-tested blend of six key considerations:

01

POSITIVE LONG-TERM SECULAR GROWTH TRENDS

Investing in companies exposed to industries with positive secular growth trends reduces risk and improves the likelihood of achieving attractive returns.

02

SUSTAINABLE COMPETITIVE ADVANTAGES

Strong competitive advantages prevent new entrants and minimize the threat of competition, reinforcing their owner’s ability to generate stable profits and cash flows.

03

BUYING AT A DISCOUNT TO ESTIMATED VALUE

Vukota generally purchases all core-equity holdings at a meaningful discount to its estimated value. This discount provides both a margin of safety and an improved likelihood of achieving capital appreciation.

04

STRONG BALANCE SHEETS

Vukota favors companies with strong balance sheets, as evidenced by high-quality assets, manageable leverage, and investment grade credit ratings. These factors also provide a margin of safety in the event of a macroeconomic slowdown.

05

CASH RETURNED TO SHAREHOLDERS

Selecting stocks with yields that are sustainable and expected to grow over time produces superior returns.

06

OPTIMAL SENTIMENT AND PRICING ENVIRONMENT

Once Vukota establishes that a company meets fundamental investment criteria, analysis is conducted on market sentiment and price trends to establish optimal trade execution.

Risk Management

A Vigilant, Real-Time Risk Management Practice

  • The Vukota investment team runs daily risk reports on the entire portfolio, which are used to monitor for any changes to securities, companies, industries, and macroeconomic trends to which the portfolio has exposure.
  • The risk reports include a detailed correlation matrix to closely examine any interdependent factors between portfolio holdings.
  • The monitoring and management of the portfolio are ongoing – there is never a “set it and forget it” mentality to any investment decision.

Explore VCM Strategies

Vukota Real Estate

Vukota Real Estate identifies and acquires multifamily and medical office assets located in secondary and tertiary markets, and then employs top-class property management to add value.

Vukota Private Equity

Vukota Private Equity invests in established companies led by successful entrepreneurs and management teams in sectors with which we are intimately familiar.

Vukota Public Markets

Vukota Public Markets constructs sector-agnostic public market investment portfolios with the twin goals of stable income and the mitigation of market risk.