Global Macro Investment Management
frōn-'tā-rä. Noun, Spanish. Border or frontier.
Frontera Management, LLC, is an investment manager focused on absolute-return strategies in global financial markets. Relying on its thorough understanding of the driving forces behind price action in the global markets, our investment team has developed and implemented systematic and discretionary macro strategies. We use these strategies to build well-diversified, risk-controlled portfolios.
Frontera seeks to profit from the notions that, 1) in the intermediate to long run, macroeconomic and market fundamentals determine asset returns, yet 2) it is critical to assess technical conditions in order to preserve capital when shorter-term market forces lead markets to trade away from fundamentals.
We deploy both systematic (up to 100%) and discretionary (up to 20%) trading strategies across global equity, fixed-income, commodity, and currency markets. We endeavor to generate attractive absolute and risk-adjusted returns through studying fundamental macroeconomic and market indicators and technical risk factors that we believe have an important impact on forward-looking asset returns. We select these indicators based on four criteria: 1) there is a logical, economically meaningful link between the indicator and asset returns; 2) the indicator is intrinsic to a related set of markets, such as developed market equity indices; 3) the indicator is persistent in utility over multiple market cycles; and 4) the indicator provides incremental value-added returns.
We then generate daily buy-and-sell signals from processing each indicator using a non-regression and non-fitted methodology. The resulting portfolio is subject to strict, predetermined risk limits and multiple layers of risk management tools, including VaR calculations, volatility targeting, and drawdown control in order to identify, analyze, mitigate, and report risks.
Trading in futures, options, and foreign exchange involves a high degree of risk of investment losses and may not be suitable for all investors.
Frontera is registered with the State of Connecticut as an Investment Advisor and with the Commodity Futures Trading Commission (CFTC) as a Commodity Trading Advisor (CTA) and Commodity Pool Operator (CPO) and is a member of the National Futures Association (NFA).