Tracking CTAs since 1994
CTA Profiles
Tracking CTAs since 1994
Principal(s): Brince Wilford and Scot Billington
Strategy: Option Selling / Volatility / S&P 500 Options
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The Short Premium Program (SPP) is designed as a cash efficient means to deliver risk adjusted and total returns superior to those of the S&P 500.
The program takes advantage of one of the most persistent edges in trading, realized volatility (actual market moves) is less than implied volatility (the anticipated market moves based on the cost of options or insurance). Much like any insurance, those that reduce risk must pay for someone to take that risk.
Unlike most short premium strategies, CCM limits the delta loss in a market crash to approximately 10% of the account's value. In many cases the SPP can see significant gains in a 1-3% move lower in the S&P 500. By using short term options (<10 days), selling skew, and limiting downside risk, the SPP offers a risk efficient method to profit from selling portfolio insurance.
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Covenant Capital Management, LLC (CCM) was founded in 1999 and is an alternative investment manager. CCM is registered with the Commodity Futures Trading Commission as a Commodity Trading Advisor (CTA), and manages client assets using global futures markets as an investment vehicle.
Scot Billington started his career at J. C. Bradford & Co. where he was responsible for executing orders, providing investment advice, and developing trading systems. Mr. Billington later worked for Ronin Capital, a proprietary trading firm at the Chicago Board Options Exchange. At Ronin Capital Mr. Billingon's main function was acting as a market maker in the S&P 100 Index options market.
Brince Wilford’s prior work history includes serving as Senior VP of Investments for Healthcare Realty Trust, Inc., a publicly-traded real estate investment trust. Mr. Wilford's primary responsibilities included development, financial modeling, consulting, and asset acquisitions.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ROR | Max DD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | -0.78% | -0.18% | 0.28% | 0.55% | -0.18% | -0.10% | -0.82% | -0.27% | 0.00% | 0.00% | 0.00% | 0.00% | -1.51% | -1.51% |
| 2023 | 0.92% | 0.88% | -0.27% | 0.62% | 0.55% | -1.01% | 0.09% | 1.47% | 1.42% | 0.70% | -1.12% | -0.80% | 3.44% | -1.91% |
| 2022 | -3.81% | -1.02% | 0.40% | -0.21% | -1.03% | -0.64% | -1.16% | -1.67% | -1.93% | 1.65% | 0.39% | 0.09% | -8.67% | -10.58% |
| 2021 | 1.33% | 2.25% | 4.04% | 0.96% | 0.34% | 1.22% | -2.22% | 0.81% | -0.71% | 2.15% | 0.38% | -0.35% | 10.54% | -2.22% |
| 2020 | 1.28% | 1.49% | -0.03% | 2.78% | -3.70% | 3.44% | 5.21% | -3.7% | ||||||
| Years | 2020 | 2021 | 2022 | 2023 | 2024 YTD |
|---|---|---|---|---|---|
| ROR | 5.21% | 10.54% | -8.67% | 3.44% | -1.51% |
| Max DD | -3.70% | -2.22% | -10.58% | -1.91% | -1.51% |
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE SUCCESS. IN SOME CASES MANAGED ACCOUNTS ARE CHARGED SUBSTANTIAL COMMISSIONS AND ADVISORY FEES. THOSE ACCOUNTS SUBJECT TO THESE CHARGES, MAY NEED TO MAKE SUBSTANTIAL TRADING PROFITS JUST TO AVOID DEPLETION OF THEIR ASSETS. EACH COMMODITY TRADING ADVISOR ("CTA") IS REQUIRED BY THE COMMODITY FUTURES TRADING COMMISSION ("CFTC") TO ISSUE TO PROSPECTIVE CLIENTS A RISK DISCLOSURE DOCUMENT OUTLINING THESE FEES, CONFLICTS OF INTEREST AND OTHER ASSOCIATED RISKS. A HARD COPY OF THESE RISK DISCLOSURE DOCUMENTS ARE READILY AVAILABLE BY CLICKING ON EACH CTA'S "REQUEST DISCLOSURE DOCUMENT" BUTTON.
THE FULL RISK OF COMMODITY FUTURES, OPTIONS AND FOREX TRADING CAN NOT BE ADDRESSED IN THIS RISK DISCLOSURE STATEMENT. NO CONSIDERATION TO INVEST SHOULD BE MADE WITHOUT THOROUGHLY READING THE DISCLOSURE DOCUMENT OF EACH OF THE CTAS IN WHICH YOU MAY HAVE AN INTEREST. REQUESTING A DISCLOSURE DOCUMENT PLACES YOU UNDER NO OBLIGATION AND EACH DOCUMENT IS PROVIDED AT NO COST. THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN ANY OF THE FOLLOWING PROGRAMS NOR ON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE DOCUMENTS. OTHER DISCLOSURE STATEMENTS ARE REQUIRED TO BE PROVIDED TO YOU BEFORE AN ACCOUNT MAY BE OPENED FOR YOU.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. PROSPECTIVE CLIENTS SHOULD NOT BASE THEIR DECISION ON INVESTING IN THIS TRADING PROGRAM SOLELY ON THE PAST PERFORMANCE PRESENTED. ADDITIONALLY, IN MAKING AN INVESTMENT DECISION, PROSPECTIVE CLIENTS MUST ALSO RELY ON THEIR OWN EXAMINATION OF THE PERSON OR ENTITY MAKING THE TRADING DECISIONS AND THE TERMS OF THE ADVISORY AGREEMENT INCLUDING THE MERITS AND RISKS INVOLVED.
AUTUMN GOLD CTA INDEXES ARE NON-INVESTABLE INDEXES COMPRISED OF THE CLIENT PERFORMANCE OF CTA PROGRAMS INCLUDED IN THE AUTUMN GOLD DATABASE AND DO NOT REPRESENT THE COMPLETE UNIVERSE OF CTAS. INVESTORS SHOULD NOTE THAT IT IS NOT POSSIBLE TO INVEST IN THESE INDEXES.