Volatility Advantage Strategy
ABOUT US
Red River Capital LLC is a Commodity Trading Advisor firm specializing in the trading of volatility futures, primarily the VIX. The firm is based out of Indianapolis, Indiana.
Red River Capital LLC takes advantage of the VIX term structure, the relationship of the spot VIX to futures prices, and the mean-reversion characteristics unique to the VIX. Positions are generally opened with target holding time of hours or days, and the strategy often involves dozens or hundreds of trades per month. Holdings currently include only long and short VIX positions, along with options on S&P or VIX futures (held as insurance).
OBJECTIVE
The strategy seeks to achieve high returns by harnessing the power of volatility
while maintaining a low correlation to the S&P 500.
FOUNDER
Carl J. Rothenbacher
FOUNDER / PRINCIPAL MANAGERCarl J. Rothenbacher is the founder and manager of Red River Capital LLC.
Starting his career in IT with a computer science degree, Mr. Rothenbacher worked as a software developer, and became interested in the application of statistics and data analysis to futures trading.
He holds an MBA in Finance from Butler University, and has been successfully trading volatility-related products for the past five years.
RISK DISCLOSURE
TRADING IN FUTURES, FOREX, AND OPTIONS INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM/COMMODITY POOL OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR/COMMODITY POOL OPERATOR DISCLOSURE.
CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM/COMMODITY POOL OR THIS BROCHURE OR ACCOUNT DOCUMENT. BEFORE INVESTING, READ ALL RISK DISCLOSURES PROVIDED.
*PLEASE NOTE THAT THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN FOREX/COMMODITY INTEREST TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.
Monthly performance is based on proprietary trading, adjusted to reflect a 2% annual management fee and a 20% performance fee. S&P 500 returns are shown for information purposes only. The strategy is not designed to mimic returns of the S&P 500. The S&P 500 cannot be directly traded."
