Chaos Trades

‘Chaos Trades’ is a fund dedicated to short term trading and investing in companies that are listed on the AIM market, a sub-market of the London Stock Exchange that has been designed to cater to small and growing companies. ‘Short term’ constitutes any length of period from one day to six months.

The fund is not bound by any investment mandate such as:

          Sector weighting of fund
          Cash weighting of fund
          Long / short weighting of fund
          Minimum and maximum exposure to one particular stock
          Minimum and maximum market capitalization of one particular stock

By removing all restrictions set out in conventional fund mandates, this enables the Chaos Trades fund to capitalize on the frequent irrational valuations of companies and the significant volatility of share price movements that is synonymous with the AIM market.

In broad terms, the fund seeks out trading opportunities that materialize owing to one or more of the following transpiring in a particular stock:

          Oversold (gradually)
          Oversold (rapidly)
          Significant positive news released
          Significant positive news due
          Momentum trade
          Material shift within Company’s market
          Company’s value not recognized
          Placing
          Short squeeze

 

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