Latest update: Monday, Jan 1, 2024 — Based on the US market landscape currently available, we are confident of generating 20-25% return per annum over next 3 years for Family Offices that are looking to increase absolute returns. We generated over 50% gain in 2023 using Nasdaq ETFs (which are our core trading and investing instruments). If such performance is of interest to you, please contact us today to start a small Pilot Project for 6 months, and then scale up after seeing results. We also have portfolios for delivering Relative Return (vs S&P500 index) and Fixed Return (using S&P500 ETFs). Thanks.
JMD Capital aims to work with Family Offices worldwide, and help them generate gains using our superior market research and trading systems that enable superior performance. Since year 2008, we have got opportunities to help in different ways, like Wealth Management, Long term Investments, Estate Planning, Asset Protection, including creation of Trusts, Governance Model, etc. We have seen that Family Offices worldwide have two broad goals: (a) Wealth Preservation (through diversification across assets), and (b) Capital Growth (through investments in public-listed companies, mutual funds, and private companies/ startups). We can help in both these goals using our strength is investing and trading ETFs in the US market.
We have three model portfolios:
1. Alpha (Absolute Return) — In this portfolio, we take take calculated risks in S&P500 futures, Nasdaq ETFs and stocks, and commodity futures to maximize gains. There is ongoing work every week, and during times of market volatility, the work is even more because more opportunities arise during volatile markets. This portfolio uses the full range of our market analysis, and investing and trading experience with various ETFs. The aim is to use all opportunities in a year and keep working till year-end.While there is no fixed target for annual return, we aim to achieve 30-50% return per annum, and it has been achieved in all recent years. In the year 2020, this portfolio has given over 120% return (driven mainly by the deep lows of March 2020, which gave once in a decade kind of buying opportunities).
For example: In this model portfolio, Nasdaq ETF (TQQQ) was bought at $32 on 31 Oct 2023, and sold at $52 on 28 Dec 2023, giving 62% gain in 2 months. Being Nasdaq100 ETF, this trade could be done with 25-35% of the portfolio capital, so it contributed strongly to the annual gains of this model portfolio, which exceeded 50% annual gain.
2. Delta (Relative Return) — In this portfolio, our benchmark is S&P500 index and we will aim to outperform it by 10-15% each year. This relative out-performance is created through buying S&P500 futures and/or leveraged ETF (SPXL) after sharp corrections, and exiting them after basic market recovery. A core position in S&P500 ETF (SPY) continues ongoing basis. The long term (last 90 years) annualized return of S&P500 (US large cap index) is 9% per annum. So this relative return portfolio aims to deliver about 20-25% return per annum.
3. Omega (Fixed Return) — In this portfolio, we aim to generate 12% per annum year after year. The fixed returns are created by trading 20 year Treasury-Bill ETF (TMF) along with S&P500 ETFs (SPY and SPXL) or at selective times during the year, using a small part of the portfolio capital. Majority capital stays in money market funds all the time. In almost every year, the target of 12% return is achieved within first 6-9 months, and then all the capital can remain locked in money funds to earn additional interest income.
While each Family Office is different in someway, we sincerely believe that we can help Family Offices generate superior returns using our investing strategies and market understanding. The aim is to use our US market expertise to do profitable work with as many Clients as possible.
In each case, we want to understand your investment goals, and see if we can help/contribute positively towards your goals. A simple 20 minute telecon can make this clear.
Pilot Project:
The starting point of every engagement is a Pilot Project for 3-6 months duration, with any amount of your choice. You can allocate any amount of your choice in your own trading account, and do the specific trades that we will share with you. We will do this for 3-6 months and evaluate the results. If you like the results, we can scale up the capital to $1 million or more. Capital always stays in your account, and you will give a pre-defined amount as our service fee.
The trades given to each Family Office depend on the capital allocated and the opportunities available during the project timeframe. Every 6 month period offers its own opportunities and challenges, and you will get a good idea of how our work can give you gains.
We trade ETFs and futures of the following US market equity indices: S&P500, Nasdaq100, S&P Biotech Index, and Russell 1000 Financial Services Index. We also track and trade Crude Oil futures, and Agri Commodity futures (Soybean, Corn, Coffee, etc).
Long Term Investments:
We have been asking all Private Investors and Family Offices to keep investing in the Nasdaq ETF (QQQ) since $50 in year 2010, and it has hit $400 in Dec 2023.
The Nasdaq ETF (QQQ) is a long term wealth creator, and is the ideal fund of frontline technology companies. The companies in the Nasdaq100 index may keep changing with time, but the Nasdaq ETF (QQQ) will keep moving ahead because it is tied to the Nasdaq100 index. The best time to buy this Nasdaq ETF is during sharp market corrections, like in Feb 2016, Dec 2018, and March 2020. If we are working with you, we will ensure that you buy this ETF during such times when we get our high conviction buying signals.
Our long term equity investments are focused in the Technology Industry (Software and Biotech). We have a strong preference for ETFs because of the simplicity and stability they offer for long term investments.
For example, our core Biotech portfolio has delivered 20% CAGR over last 10 years, and our Biotech trading has given another 20% above that, thereby creating a very good result for long term investments.
We have to understand that billions of dollars are waiting on the sidelines to support all new R&D efforts in Biotech, and latest software innovations (AI, Machine Learning, etc) are accelerating the R&D efforts. We can’t get involved in every Biotech venture (the risks at company level are very high), but we can stay invested in the leading biotech companies with a few Biotech ETFs, to create attractive gains over next 10-20 years. We believe that Investors can make 25-30% CAGR over next 10-20 years on their Biotech portfolio allocation with our direction and guidance. And if we come across a really interesting biotech company that’s doing path breaking work, we will not hesitate to take an equity position in that company, because the 5-10 year return from such investments can be huge. Few such companies that we identified were early in their life are: Amgen (AMGN), Seattle Genetics (SGEN) and Global Blood Therapeutics (GBT). However, majority capital will stay in the Biotech ETFs because they will give best results with larger capital allocations.
Next Steps: We are happy to work with Family Offices using all our investing experience and trading systems. Let’s connect to understand your investment goals, and let’s do a Pilot Project where you can see our performance in your own account. Thanks.