News & Views: Launch of Stutland Volatility Funds

Sabrient Partners with Options Industry Veteran
Stutland Volatility Group to Launch Stutland Volatility Funds

Long/Short Expertise Anchors the Joint Venture

Chicago, Ill., March 25– Sabrient Systems and Stutland Volatility Group (SVG) announce the formation of Stutland Volatility Funds (SVF), an asset management firm offering a suite of long/short quant funds designed to deliver superior stock selection with enhanced risk management.  SVF will benefit hedge funds, actively managed ETFs, mutual fund distributors and privately managed accounts.

“As U.S. markets approach 11 years of negative and near zero returns, simple buy-and-hold is no longer acceptable as a viable investment strategy,” said SVG Managing Partner Brian Stutland.  Along with Stutland, Sabrient President Scott Brown and SVG’s Luke Rahbari will manage SVF.

“Investors want consistent returns that avoid the pitfalls of buy-and-hold strategies of years past,” said Stutland. “With Sabrient’s track record in stock ranking and Stutland’s strength in designing and executing effective risk mediation strategies with derivatives and structured products, SVF is uniquely positioned to deliver on these expectations.”

Sabrient’s proven long/short strategies strengthen SVF capabilities. “These strategies consistently surpass the buy-and-hold model, once the gold bar for so many investors,” said Brown. 

SVF Methodology:

• SVF will utilize active stock selection metrics of the Sabrient ranking system to gain exposure to core long and short positions.

• SVF will analyze volatility curves and skews to enhance portfolio performance and use innovative options trades to average dollar-cost trades with lower capital use.

• Active overlays and VIX hedging strategies will be deployed to control market risk and enhance returns.

“In contrast to most mutual funds, SVF is a multi-step stock selection and implementation fund that begins with active stock selection metrics to make its buy and sell decisions on a large universe of stocks,” explained Rahbari, a 20-year veteran of the options markets.

SVF will follow establishment of its active stock selection metrics with a combination of stocks and options to find the most efficient entry and exit points for the trades. “Once the positions are established, specific exit points are determined,” said Rahbari. “Then positions are hedged or re-balanced according to the Sabrient ranking universe.”

While SVF begins with a focus on four core investment areas, it will not be limited to them. “Our combined, diversified expertise and the SVF structure allow us to be flexible, nimble and responsive to the continuous changes that the global investment world generates for us all,” said Brown.

Please direct SVF inquiries to: Luke Rahbari at Stutland via email to luke.rahbari@stutland.com.

Interview: David Brown, Sabrient founder and chief market strategist; Scott Brown, Sabrient president; Luke Rahbari, SVG Principal and Brian Stutland, founder and managing partner of SVG. Also see SVF at www.stutlandvolatilityfunds.com.

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About Sabrient Systems:

Sabrient Systems, LLC is an independent equity research firm that specializes in custom strategies using quantitative modeling to rank stocks for Alpha generation, risk measurement, and creation of unique indexes that are tracked by exchange-traded funds (ETFs).

Among Sabrient’s most noted indexes are the Sabrient Defensive Equity Index (NYSE Arca: SBRDE), tracked by the Guggenheim Defensive Equity ETF (NYSE Arca: DEF) and rated 5-STARs by Morningstar; and the Sabrient Insider Sentiment Index, (NYSE Arca: SBRIN), tracked by the Guggenheim Insider Sentiment ETF (NYSE Arca: NFO).  NFO is approaching $200 million in assets under management. Sabrient’s unbiased, fundamentals-based quantitative equity research generates investing models that have consistently outperformed relevant benchmarks over a broad range of investing styles, market caps, time frames and market conditions.

Sabrient clients include fund managers, registered investment advisors (RIAs), high net worth individuals, and companies that create and distribute ETFs. Sabrient is based in Santa Barbara, California. Visit www.sabrient.com.

About Stutland Volatility Group:

Stutland Volatility Group (SVG) treats volatility as an asset class to protect portfolios, utilizing overlay strategies to add income to stock, ETF, and index positions, with the overarching goal of creating sound financial plans and investment strategies to grow wealth for its clients. Portfolios are built on actively managed option overlay approaches and trading decisions.

SVG applies these strategies to add income to Stutland Equities, LLC, a wholly owned subsidiary of SVG. Stutland Equities is a premier futures and options trading company on the Chicago Board Options Exchange. Stutland Equities specializes in volatility arbitrage across multiple asset classes and is a consultant to institutions and family offices. SVG and Stutland Equities are based in Chicago, Illinois. Visit www.stutland.com.