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GRANITE ALTERNATIVE GROUP

Granite Alternative group is a Fund Management Firm established by Menashe Shemesh and Uri Geller who have over 20 years of experience as derivatives traders. In 2013 Granite launched Granite Alphen Capital Fund (GACF), its flagship fund, an award-winning systematic hedge fund. Currently, Granite manages several systematic hedge funds in the derivatives space. All of the firm’s strategies are model based and implement optimal risk/reward profiles.

Systematically preserving capital

INVESTMENT PHILOSOPHY

Multi-Strategy Approach

We are strong believers in the multi-strategy approach as a mean to reduce risk and correlation in our Funds

Exploiting Inefficiencies

Our philosophy is based on systematic inefficiencies in specific segments of the derivatives market

Statistical Edge

Our strategies utilize specific parameters in the marketplace that can provide a statistical edge

Rigorous Risk Management

Rigorous Risk management is a key factor to our success, and this is emphasized in every aspect of our business

Dynamic

Our strategies are dynamic and is highly adaptable to every type of market condition

Systematic

Our trading decision process is purely systematic.
We execute all the trades ourselves based on the outcomes of our models.

We seek to extract non - correlated returns
by employing a mix of risk - on strategies
during stable market conditions , and risk - off
strategies designed for volatile markets

GRANITE HIGHLIGHTS

Experience

Decades of experience in derivatives trading

Vast & wide-ranging trading experience

Long track record

Trust

Listed & liquid products

Stringent risk management

Capital preservation

Absolute return

Performance

Low correlation to equity markets

Fixed income replacement

Outperformance during market corrections

Consistent returns with low volatility

Trust

Listed & liquid products

Stringent risk management

Capital preservation

Absolute return

Performance

Low correlation to equity markets

Fixed income replacement

Outperformance during market corrections

Consistent returns with low volatility

Experience

Decades of experience in derivatives trading

Vast & wide-ranging trading experience

Long track record

Granite's alternative group main objective is to provide an absolute high yearly return regardless of prevailing market conditions and volatility.

INVESTMENT PROCESS

We apply a Multi – Strategy Approach, trading derivatives across asset classesand geographies, with a focus on volatility and markets inefficiencies

Idea Generation

Pinpointing inefficiencies and attempting to capitalize on them

Sourcing & Validating

Reliable data sources such as the CBOE & CME as well as rigorous data integrity processes

Extensive Backtesting

In house cutting-edge backtesting software

POC

Initially trading on reduced size for a pilot trading period

Optimal Allocation

Setting the appropriate allocation of the new strategy in the aggregated portfolio

Execution

Gradually increasing the position to optimal size

Granite’s strategies seek to generate returns with low correlation to traditional markets

RISK MANAGEMENT

Reaching Stop loss limits

Set procedures for closing our position upon reaching our Stop Limits
Exposure hedging protocols in place for volatile & illiquid markets

Post-Trade Risk Management

Transmitting Stop Loss orders to the trading platform for the duration of the positions
Monitoring all positions during market hours and after hours
Performing daily Stress Tests with our proprietary volatility sensitive Risk Model
Hedging our portfolio risk according to our
exposures and positions
Tail Hedges

Pre-Trade Built In Risk Management

Multi-strategy approach reduces risk and broadens diversification
Certain strategies have negative correlation to equities
The sub-strategies are options spreads or long/shorts which caps the exposure and prevents tail risk
Position distance and sizing changes depending on prevailing market conditions & opportunities
Built-in diversification: caps per strategy, asset and asset class
Low Margin requirements
Predetermined Stop Loss limits for specific strategies