The primary investment objective of BCH Tactical, L.P., (the “Partnership”) is consistent growth of capital through the buying and selling of securities including equities, fixed income, warrants, rights and options of US and non US entities. The Partnership will utilize various derivative contracts to enhance returns and minimize risk. The business of the Partnership is buying and selling securities of all capitalized companies, including stocks, warrants, rights and options of U.S. and non U.S. entities. The Partnership ordinarily will invest in Securities that trade in sufficient volume to allow for swift execution of transactions. Positions in Securities may be held for very short periods, even as little as a portion of one day. The Partnership shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to or for the furtherance of the purposes and business described herein, and shall have, without limitation, any and all of the powers that may be exercised on behalf of the Partnership by the General Partner. The General Partner, BCH CAPITAL MANAGEMENT, LLC, has delegated authority over the Partnership’s trading activity and management of the Partnership’s portfolio to its affiliate, BCH CAPITAL ADVISORS, LLC (the “Investment Advisor”).
The Partnership will engage in a three pronged strategy to produce our results. The first step begins with a top down approach to investing in equity markets relative to risk free assets. Our proprietary targets in the S&P 500 will give us our high, fair & low targets to know when to tactically add or subtract from equity positions. As we hit our high end target, we will start the hedging process by purchasing protective options as well as the Volatility Index. As we move back into low/fair value target ranges we will add to best in class equity positions using stocks and sector ETFs. At times we will have large cash/bond positions if the risk/reward in cash and/or debt outweighs that of equities.
When we are overweight equities, we will identify attractive sectors and best in class quality stocks inside of those sectors. The screening process is designed to identify quality, long standing companies whose upside potential far exceeds the inherent risk.
The final step to help achieve our primary goal of consistent results is the implementation of a covered call strategy. The writing of covered calls will allow the fund to generate current cash flow, which will aid in enhancing the overall performance. The Partnership intends to use hedging strategies that correlate directly with the underlying security in an effort to minimize or mitigate the effects of negative volatility.