Portman Square Capital

Overview

Portman Square Capital is a London-based hedge fund specializing in volatility trading and risk management systems. The firm focuses on generating absolute returns by targeting low single-digit returns in stable markets and double-digit returns during market dislocations. Their investment approach involves constructing portfolios through a collaborative, bottom-up process, screening global volatility markets for value opportunities in derivative securities to build risk packages. These packages combine elements of both carry and convexity, forming the building blocks of an overall portfolio designed to perform well in market dislocations while producing positive expected returns in other times. The firm's investment philosophy centers on advanced research and screening, bottom-up portfolio construction, and integrated risk management. They utilize sophisticated proprietary tools to identify trades that offer long volatility and suitable funding mechanisms. Each investment package is thoroughly stress-tested, individually and in combinations, using proprietary and third-party risk models to ensure downside risk is understood and managed within defined portfolio parameters. This comprehensive approach aims to deliver consistent returns while managing risk effectively. Portman Square Capital operates in a well-defined niche space with a high barrier to entry, emphasizing a risk framework, systems, culture, and control that prevent style drift or unlimited risk-taking. Their team comprises over 30 professionals with a combined experience of more than 190 years in volatility trading.

Investment Focus

• Accredited investors only
• Long-term investment horizon