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Aeolus Investment

Approach & Philosophy

Aeolus Hedged Equity Strategy is a concentrated long/short equity program deploying a proprietary “adaptive beta” approach developed by Founder Christian D’Urso. The core underlying strategy (Targeted Growth) has been running live for the past 4+ years in a long only, unlevered version, applying a systematic trend-following system to identify an optimized equity portfolio. Aeolus Hedged Equity Fund, LP (“AEF” or the “Fund”), launched in January 2024 for US investors and the ICON Aeolus Luxembourg Actively Managed Certificate (“AMC”) DE000A4AE0W9 was issued on April 1, 2024, for non-US investors.

 

The program first takes a top-down approach identifying market signals using proprietary pattern recognition techniques which define actionable trends within generally 4-6 sectors or geographies from which only the most meaningful high conviction trends are chosen, i.e., overweight EU over US equities or industrials over financials. The system then selects ~15-30 stocks expected to optimally express any trend. The system further generates signals identifying market state (falling/neutral/rising) where the long only performance is significantly enhanced by applying a rules based variable hedge overlay to achieve the “adaptive beta” characterized by reduced volatility and drawdown protection.

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Systematic Trend-Following System for Optimizing Equity Returns & Risk  Control

The Programs objective is to achieve above average equity returns and to outperform the S&P 500 over the long term with substantially lower volatility and drawdowns. The proprietary, quantitative trend-following system, Adaptive Beta, is systematic, scalable, and reproducible – not a “black box”.

 

The Program deploys a dynamic hedge program (“DHP”) to hedge the portfolio and control risk at both granular and portfolio levels.

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  • DHP is specific to identified trend(s) with aim to reduce volatility, control drawdowns

and to drive additional returns.

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  • DHP uses equity options plus equity and bond ETFs and their related options plus

futures and futures options.

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Christian D´Urso – Founder of Aeolus Hedged Equity Strategy

Christian D’Urso has over 20 years of investment and financial. business experience, including developing and refining a set of investment strategies to provide attractive risk-adjusted returns through varying market conditions. Christian founded TradeWinds Asset Management, a boutique US registered investment advisory firm (RIA), which offers innovative solutions to families across the US. While applying his advanced analytical skills and financial expertise, he has been active in trading system design and development for decades geared to create investment strategies to help clients better navigate increasingly challenging financial markets. TradeWinds has been managing client money for over 16 years with AUM currently > 100 million.


The Aeolus Strategy advised to Icon is the culmination of a successful RIA business and proven track record.

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