The investment product “DLTAS” is an abbreviation of Diversifying Liquid Transparent Absolute return Strategies. The Product will diversify classic portfolios as DLTAS is low correlated to equities, bonds, and real assets. Moreover, DLTAS will also hedge against falling ordinary markets. It is liquid and can be fully liquidated within a day without significant slippage. It is fully transparent and all the holdings and exposures can be seen any time by the client. As the purpose of the product is to deliver positive returns irrespectable of general market conditions the product is an absolute-return product. It delivers high returns, low risk, and gives down-side protection.
DLTAS can be perceived as a strategic down-side protecting risk management investment product with positive returns.
The product is cognitively more demanding than buying stocks/equity, bonds/credit or real assets/cash-flows. It is trading strategies driven by the value proposition of decreasing economic risks which induce higher economic growth rates globally. If you want to read about the background - click here
The product DLTAS offers the following attributes:
The background for the product, in modern times, goes back to year 1848 in USA. Wealthy investors in USA were looking for investment opportunities. In the Midwest farmers were growing, mainly, corn and they were face with the risk that harvests could be bad. Prices and quantities of the crops were unsure. The wealthy investors and the farmers came up with the idea that sharing risk would be beneficial for both parties.
By trading crops at known future prices a lot of the risk could be taken out of the farmers’ production and profit. The investors would gain by being able to invest in crops and take part in the profit of the certainty-equivalence gain. The result and the real economic effect was that more crops were planted and more people could be fed in the Midwest. More people moved to the Midwest and economic growth flourished. Sharing risk is not a zero-sum game; rather it increases utility for the participants and the surrounding society.
Until the 1970ies it was commodities which were traded on Futures exchanges. In the 1970ies financial futures were also beginning to be traded. Today corporations, pension funds, sovereigns etc. are managing their risks by using futures and options markets. That is wealth creation globally.