A Report On Covenant Capital Management

1578 Words7 Pages
Covenant Capital Management was founded in 1999, and since then, it increasingly grew its AUM to approximately $300 million for its clients around the world. The firm’s headquarters are located in Nashville; in addition, they have a fully-redundant branch office in Chicago. The founders, Brince Wilford and Scot Billington, focus their efforts on the refinement of their core strategy which has not changed since the inception of the firm. CCM partners with select institutional clients in the development of customized trading models that achieve specific risk and return stream objectives.
Covenant Capital Management is a ‘Boutique’ CTA designed to fill the void between small CTA with no track records and huge institutional funds that are too big to take good care of the small investors. CCM wants to be a CTA that offers the best of both worlds, using an innovative trading model that yields unique and reliable return streams as well as institutional-grade infrastructure. The firm remains small enough to have decent exposure to all market sectors yet secure enough to have institutional-grade compliance, technology, and back-office services.
The goal of this paper is to explain why CCM’s aggressive program is a good alternative to any investor looking to diversify its portfolio. The paper will be divided into three distinct parts: the operational analysis, the quantitative analysis and a comparison against its peers (including the impact of CCM in a traditional portfolio).
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