UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 3, 2017 (March 28, 2017)
EQUINOX FRONTIER FUNDS
EQUINOX FRONTIER BALANCED FUND
EQUINOX FRONTIER DIVERSIFIED FUND
(Exact Name of Registrant as Specified in Charter)
| | | | |
| Delaware | | 000-51274 | | 36-6815533 |
(State or Other Jurisdiction of Incorporation) | | (Commission File Number) | | (IRS Employer Identification No.) |
c/o Frontier Fund Management, LLC
25568 Genesee Trail Road
Golden, Colorado 80401
(Address of Principal Executive Offices)
(303)454-5500
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| | ☐ | Written communications pursuant to Rule 425 under the Securities Act. |
| | ☐ | Soliciting material pursuant to Rule14a-12 under the Exchange Act. |
| | ☐ | Pre-commencement communications pursuant to Rule14d-2b under the Exchange Act. |
| | ☐ | Pre-commencement communications pursuant to Rule13e-4(c) under the Exchange Act. |
Effective March 28, 2017, each of the Equinox Frontier Diversified Fund and the Equinox Frontier Balanced Fund added Welton Investment Partners,LLC as a major commodity trading advisor.
The current major commodity trading advisors, including those advising commodity pools on the Galaxy Plus Platform and/or reference programs for the Equinox Frontier Diversified Fund are:
| | • | | Chesapeake Capital Corporation |
| | • | | Crabel Capital Management, LLC |
| | • | | Quantitative Investment Management, LLC |
| | • | | QuantMetrics Capital Management, LLP |
| | • | | Welton Investment Partners, LLC |
| | • | | Winton Capital Management Ltd. |
The managing owner anticipates that between 10% and 30% of the assets of the Equinox Frontier Diversified Fund may be allocated to each of the major commodity trading advisors, commodity pools on the Galaxy Plus Platform and/or reference programs at any time.
The current major commodity trading advisors, including those advising commodity pools on the Galaxy Plus Platform and/or reference programs for the Equinox Frontier Balanced Fund are:
| | • | | Crabel Capital Management, LLC |
| | • | | Quantitative Investment Management, LLC |
| | • | | QuantMetrics Capital Management, LLP |
| | • | | Welton Investment Partners, LLC |
| | • | | Winton Capital Management Ltd. |
The managing owner anticipates that between 10% and 30% of the assets of the Equinox Frontier Balanced Fund may be allocated to each of the major commodity trading advisors, commodity pools on the Galaxy Plus Platform and/or reference programs at any given time.
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As of March 28, 2017, the allocation of the assets of the Equinox Frontier Diversified Fund between the trading advisors was as follows (however, the actual allocation among trading advisors for the Equinox Frontier Diversified Fund will vary based on the relative trading performance of the trading advisors and/or reference programs, and the managing owner may otherwise vary such percentages from time to time in its sole discretion):
| | | | |
Advisor | | Allocation as of March 28, 2017 (expressed as a
percentage of aggregate notional exposure to
commodity trading programs) | |
Aspect Capital Limited (accessed via Galaxy Plus Fund – Aspect Feeder Fund (532) LLC) | | | 4.9 | % |
Chesapeake Capital Corporation (accessed via Galaxy Plus Fund – Chesapeake Feeder Fund (518) LLC) | | | 11.0 | % |
Crabel Capital Management, LLC | | | 3.7 | % |
Doherty Advisors, LLC (accessed via Galaxy Plus Fund – Doherty Feeder Fund (528) LLC) | | | 3.1 | % |
Emil van Essen LLC (accessed via Galaxy Plus Fund – Emil van Essen STP Feeder Fund (516) LLC) | | | 8.5 | % |
FORT, L.P. (accessed via Galaxy Plus Fund – FORT Contrarian Feeder Fund (510) LLC | | | 8.3 | % |
H2O AM LLP | | | 8.0 | % |
Landmark Trading Company (accessed via Galaxy Plus Fund – LRR Master Fund (522) LLC) | | | 1.4 | % |
Quantitative Investment Management, LLC (accessed via Galaxy Plus Fund – QIM Feeder Fund (526) LLC) | | | 16.7 | % |
QuantMetrics Capital Management LLP (accessed via Galaxy Plus Fund – QuantMetrics Feeder Fund (527) LLC) | | | 14.6 | % |
Quest Partners LLC (accessed via Galaxy Plus Fund – Quest Feeder Fund (517) LLC) | | | 5.1 | % |
Welton Investment Partners, LLC (accessed via Galaxy Plus Fund – Welton GDP Feeder Fund (538) LLC) | | | 6.5 | % |
Winton Capital Management Ltd. | | | 8.2 | % |
As of March 28, 2017, the allocation of the assets of the Equinox Frontier Balanced Fund between the trading advisors was as follows (however, the actual allocation among trading advisors for the Equinox Frontier Balanced Fund will vary based on the relative trading performance of the trading advisors and/or reference programs, and the managing owner may otherwise vary such percentages from time to time in its sole discretion):
| | | | |
Advisor | | Allocation as of March 28, 2017 (expressed as a
percentage of aggregate notional exposure to
commodity trading programs) | |
Aspect Capital Limited (accessed via Galaxy Plus Fund – Aspect Feeder Fund (532) LLC) | | | 5.5 | % |
Beach Horizon LLP (accessed via Galaxy Plus Fund – Beach Horizon Feeder Fund (525) LLC) | | | 4.3 | % |
Crabel Capital Management, LLC | | | 4.3 | % |
Doherty Advisors, LLC (accessed via Galaxy Plus Fund – Doherty Feeder Fund (528) LLC) | | | 3.7 | % |
Emil van Essen LLC (accessed via Galaxy Plus Fund – Emil van Essen STP Feeder Fund (516) LLC) | | | 6.4 | % |
FORT, L.P. (accessed via Galaxy Plus Fund – FORT Contrarian Feeder Fund (510) LLC | | | 10.6 | % |
H2O AM LLP | | | 10.4 | % |
Landmark Trading Company (accessed via Galaxy Plus Fund – LRR Master Fund (522) LLC) | | | 2.8 | % |
Quantitative Investment Management, LLC (accessed via Galaxy Plus Fund – QIM Feeder Fund (526) LLC) | | | 22.0 | % |
QuantMetrics Capital Management LLP (accessed via Galaxy Plus Fund – QuantMetrics Feeder Fund (527) LLC) | | | 13.5 | % |
Quest Partners LLC (accessed via Galaxy Plus Fund – Quest Feeder Fund (517) LLC) | | | 1.0 | % |
Welton Investment Partners, LLC (accessed via Galaxy Plus Fund – Welton GDP Feeder Fund (538) LLC) | | | 7.2 | % |
Winton Capital Management Ltd. | | | 8.4 | % |
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DIVERSIFICATION SUMMARY
EQUINOX FRONTIER FUNDS – THE EQUINOX FRONTIER DIVERSIFIED FUND
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equinox Frontier Diversified Fund Trading
Advisors and/or Reference Programs: | | Program | | Interest
Rates | | | Currencies | | | Equity
Indices | | | Metals | | | Energy | | | Agricultural
Commodities | | | Total | |
Major Advisors and/or Reference Programs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Aspect Capital Limited* | | Core Diversified Program | | | 25.0 | % | | | 25.0 | % | | | 25.0 | % | | | 10.0 | % | | | 7.5 | % | | | 7.5 | % | | | 100 | % |
Chesapeake Capital Corporation | | Diversified Program | | | 7.8 | % | | | 28.8 | % | | | 39.1 | % | | | 8.5 | % | | | 1.9 | % | | | 14.0 | % | | | 100 | % |
Crabel Capital Management, LLC | | Crabel Multi-Product 1x Program | | | 25.0 | % | | | 24.0 | % | | | 33.0 | % | | | 5.0 | % | | | 9.0 | % | | | 4.0 | % | | | 100 | % |
Emil van Essen | | Multi-Strategy Program | | | 2.0 | % | | | 0.0 | % | | | 0.0 | % | | | 5.0 | % | | | 55.0 | % | | | 38.0 | % | | | 100 | % |
FORT, L.P. | | Global Contrarian Program | | | 44.4 | % | | | 20.3 | % | | | 22.6 | % | | | 1.0 | % | | | 11.7 | % | | | 0.0 | % | | | 100 | % |
H20 AM LLP | | Force 10 | | | 28.0 | % | | | 40.0 | % | | | 32.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 100 | % |
Quantitative Investment Management, LLC | | Global | | | 25.0 | % | | | 12.0 | % | | | 49.0 | % | | | 3.0 | % | | | 11.0 | % | | | 0.0 | % | | | 100 | % |
QuantMetrics Capital Management LLP | | QM Futures | | | 2.0 | % | | | 2.0 | % | | | 96.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 100 | % |
Quest Partners LLC | | Quest Tracker Index Program | | | 26.0 | % | | | 20.0 | % | | | 20.0 | % | | | 7.5 | % | | | 14.0 | % | | | 12.5 | % | | | 100 | % |
Quest Partners LLC | | Quest Fixed Income Tracker Index Program | | | 26.0 | % | | | 20.0 | % | | | 20.0 | % | | | 7.5 | % | | | 14.0 | % | | | 12.5 | % | | | 100 | % |
Welton Investment Partners LLC | | GDP Program | | | 30.0 | % | | | 25.0 | % | | | 15.0 | % | | | 10.0 | % | | | 10.0 | % | | | 10.0 | % | | | 100 | % |
Winton Capital Management Ltd.** | | Diversified Futures Fund | | | 28.8 | % | | | 16.7 | % | | | 18.2 | % | | | 13.8 | % | | | 14.8 | % | | | 7.7 | % | | | 100 | % |
Non-Major Advisors and/or Reference Programs | | N/A | | | 0.7 | % | | | 1.7 | % | | | 65.1 | % | | | 0.0 | % | | | 0.3 | % | | | 32.2 | % | | | 100 | % |
Equinox Frontier Diversified Fund | | N/A | | | 19.4 | % | | | 16.4 | % | | | 40.8 | % | | | 4.5 | % | | | 10.9 | % | | | 8.1 | % | | | 100 | % |
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DIVERSIFICATION SUMMARY
EQUINOX FRONTIER FUNDS – THE EQUINOX FRONTIER BALANCED FUND
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equinox Frontier Balanced Fund Trading
Advisors and/or Reference Programs: | | Program | | Interest
Rates | | | Currencies | | | Equity
Indices | | | Metals | | | Energy | | | Agricultural
Commodities | | | Total | |
Major Advisors and/or Reference Programs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Aspect Capital Limited* | | Core Diversified Program | | | 25.0 | % | | | 25.0 | % | | | 25.0 | % | | | 10.0 | % | | | 7.5 | % | | | 7.5 | % | | | 100 | % |
Beach Horizon LLP | | Beach Horizon Program | | | 20.0 | % | | | 20.0 | % | | | 10.0 | % | | | 20.0 | % | | | 10.0 | % | | | 20.0 | % | | | 100 | % |
Crabel Capital Management, LLC | | Crabel Multi-Product 1x Program | | | 25.0 | % | | | 24.0 | % | | | 33.0 | % | | | 5.0 | % | | | 9.0 | % | | | 4.0 | % | | | 100 | % |
Emil van Essen | | Multi-Strategy Program | | | 2.0 | % | | | 0.0 | % | | | 0.0 | % | | | 5.0 | % | | | 55.0 | % | | | 38.0 | % | | | 100 | % |
FORT, L.P. | | Global Contrarian Program | | | 44.4 | % | | | 20.3 | % | | | 22.6 | % | | | 1.0 | % | | | 11.7 | % | | | 0.0 | % | | | 100 | % |
H20 AM LLP | | Force 10 | | | 28.0 | % | | | 40.0 | % | | | 32.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 100 | % |
Quantitative Investment Management, LLC | | Global | | | 25.0 | % | | | 12.0 | % | | | 49.0 | % | | | 3.0 | % | | | 11.0 | % | | | 0.0 | % | | | 100 | % |
QuantMetrics Capital Management LLP | | QM Futures | | | 2.0 | % | | | 2.0 | % | | | 96.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 100 | % |
Quest Partners LLC | | Quest Fixed Income Tracker Index Program | | | 26.0 | % | | | 20.0 | % | | | 20.0 | % | | | 7.5 | % | | | 14.0 | % | | | 12.5 | % | | | 100 | % |
Welton Investment Partners LLC | | GDP Program | | | 30.0 | % | | | 25.0 | % | | | 15.0 | % | | | 10.0 | % | | | 10.0 | % | | | 10.0 | % | | | 100 | % |
Winton Capital Management Ltd.** | | Diversified Futures Fund | | | 28.8 | % | | | 16.7 | % | | | 18.2 | % | | | 13.8 | % | | | 14.8 | % | | | 7.7 | % | | | 100 | % |
Non-Major Advisors and/or Reference Programs | | N/A | | | 0.7 | % | | | 1.7 | % | | | 65.1 | % | | | 0.0 | % | | | 0.3 | % | | | 32.2 | % | | | 100 | % |
Equinox Frontier Diversified Fund | | N/A | | | 21.2 | % | | | 16.4 | % | | | 41.0 | % | | | 4.2 | % | | | 10.2 | % | | | 7.2 | % | | | 100 | % |
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WELTON INVESTMENT PARTNERS LLC
Background
Welton Investment Partners LLC (the “Company”) is a Delaware Limited Liability Company created in June 2014. Welton Investment Partners LLC was formed to provide all of the investment advisory andday-to-day operational services previously assumed by its sole managing member, Welton Investment Corporation (the “Managing Member”, and together with the Company, “Welton”), a Delaware corporation that merged in May 1997 from a California corporation originally formed in 1988.
Welton provides discretionary investment management services regarding the trading of commodity futures contracts and over the counter (“OTC”) foreign exchange products utilizing quantitative research combined with experienced portfolio management. The Company or its Managing Member has been registered as a commodity trading advisor (CTA) and commodity pool operator (CPO) with the Commodity Futures Trading Commission (CFTC) since January 1989 and has been a member of the National Futures Association (NFA), the futures industry self-regulatory organization, since January 1989. The Company has been registered as an investment advisor (RIA) with the Security Exchange Commission (SEC) since July 2014. The Company is also a member of the Managed Funds Association (MFA). The primary place of business is:
The Eastwood Building
San Carlos between 5th and 6th
P.O. Box 6147
Carmel, California 93921-6147
Tel: (831) 626-5190
Fax: (831)626-5199
E-Mail:inquiries@welton.com
www.welton.com
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Principals
THE PRINCIPALS OF WELTON ARE PATRICK L. WELTON, ANNETTE L. WELTON, DONALD H. PUTNAM, DAVID S. NOWLIN, TODD W. MERRELL, HUNTER L. LEIGHTON, CHRISTOPHER S. KEENAN, CORNELIUS J. HOWE, JUSTIN B. DEW, GUILLAUME DETRAIT, ARTHUR BELL, JUSTIN BALAS AND WELTON INVESTMENT CORPORATION
| | |
| Dr. Patrick L. Welton | | Chief Executive Officer, Chief Investment Officer andCo-Founder |
Dr. Welton chairs the Investment Committee and participates in ongoing research. He has been an active investor for more than three decades andco-founded the Managing Member in 1988. Dr. Welton has served on committees for the Managed Funds Association (MFA) and as a member of the Board of Directors of the National Futures Association (NFA) from 1997-2000. He has spoken at numerous conferences globally, participated in panel presentations, and has authored articles about alternative investments. Dr. Welton currently chairs the investment committee of a foundation and a California pension plan. He holds undergraduate, doctoral and postdoctoral degrees from the University of Wisconsin, University of California, Los Angeles (UCLA), and Stanford University respectively.
Dr. Welton has been registered as an Associated Person and listed as a Principal with Welton Investment Partners LLC since July 2014. He has also been registered as an Associated Person and listed as a Principal with an affiliated entity Welton Global Funds Management Corporation since February 1996. Dr. Welton serves as the President and Chief Executive Officer of Welton Global Funds Management Corporation. The main business of Welton Global Funds Management Corporation is to function as a commodity pool operator for a private fund. Dr. Welton has also been listed as a Principal with an affiliated entity Welton Fund Advisors LLC since March 2014. The main business of Welton Fund Advisors LLC is to function as a commodity pool operator for a registered investment company.
| | |
| Annette L. Welton | | Chair, Board of Directors andCo-Founder |
Ms. Welton is Chair of the Board of Directors. She oversees firm management, develops independent feedback to the Board and engages in high-level industry relations. Ms. Weltonco-founded the Managing Member and served as its Chief Operating Officer for two decades. She has served on the Managed Futures Association (now Managed Funds Association) Public Relations and Trading and Markets Committees, as well as on the National Futures Association (NFA) Nominating Committee. Ms. Welton serves on the UCLA Foundation Board of Directors and also serves as the Chair of the Finance Committee. She holds a BS from the University of California, Los Angeles (UCLA).
Ms. Welton has been registered as an Associated Person and listed as a Principal with Welton Investment Partners LLC since July 2014. She has also been registered as an Associated Person and listed as a Principal with an affiliated entity Welton Global Funds Management Corporation since February 1996. Ms. Welton serves as the Secretary and Chief Financial Officer of Welton Global Funds Management Corporation. The main business of Welton Global Funds Management Corporation is to function as a commodity pool operator for a private fund. Ms. Welton has also been listed as a Principal with an affiliated entity Welton Fund Advisors LLC since March 2014. The main business of Welton Fund Advisors LLC is to function as a commodity pool operator for a registered investment company.
| | |
| Guillaume Detrait | | Chief Operating Officer and Chief Enterprise Risk Officer |
Mr. Detrait chairs the Operating Committee. He is responsible for overseeing the overall operations of the firm, helping each department adopt sound business practices and mitigating all major risks. Mr. Detrait holds an MBA from Columbia Business School and a BS in Economics from ESC Reims in France. Mr. Detrait joined Welton in July 2008 and has been registered as an Associated Person and listed as a Principal with Welton Investment Partners LLC since July 2014. Mr. Detrait has also been registered as an Associated Person and Principal with an affiliated entity Welton Fund Advisors LLC since March 2014. Mr. Detrait serves as the Chief Operating Officer of Welton Fund Advisors LLC. The main business of Welton Fund Advisors LLC is to function as a commodity pool operator for a registered investment company.
| | |
| Justin P. Balas, CAIA | | Head of Quantitative Macro Group |
Mr. Balas oversees the firm’s proprietary research and product development for the Quantitative Macro group. He holds the CAIA designation, earned a BA from the University of California, Santa Cruz and is a graduate of the Stanford Executive Program. Mr. Balas joined Welton in September 2004 and has been registered as an Associated Person and listed as a Principal with Welton Investment Partners LLC since July 2014.
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| | |
| David S. Nowlin, CRCP | | Chief Compliance Officer |
Mr. Nowlin oversees compliance, legal and internal departmental reviews. He earned an MBA from Santa Clara University and a BA from Westmont College. Mr. Nowlin has successfully completed the FINRA® Institute at Wharton Certified Regulatory and Compliance Professional (CRCP) program. Mr. Nowlin joined Welton in June 1993 and has been registered as an Associated Person and listed as a Principal with Welton Investment Partners LLC since July 2014. Mr. Nowlin has also been registered as an Associated Person and Principal with an affiliated entity Welton Fund Advisors LLC since March 2014. Mr. Nowlin serves as the Chief Compliance Officer of Welton Fund Advisors LLC. The main business of Welton Fund Advisors LLC is to function as a commodity pool operator for a registered investment company.
| | |
| Christopher S. Keenan | | Director of Marketing |
Mr. Keenan manages marketing initiatives. He holds an MBA from Northwestern’s Kellogg School of Business and a BA from UCLA. Mr. Keenan joined Welton in September 2002 and has been registered as an Associated Person and listed as a Principal with Welton Investment Partners LLC since July 2014.
| | |
| Justin B. Dew | | Director of Strategic Development |
Mr. Dew is responsible for business development, expanding the firm’s East Coast presence and identifying, evaluating and executing strategic growth opportunities. Mr. Dew holds an MBA from Cornell University and a BS from Ithaca College. Mr. Dew joined Welton in December 2008 and has been registered as an Associated Person and listed as a Principal with Welton Investment Partners LLC since July 2014. He is listed as the branch office manager of the New York office. Mr. Dew has also been registered as an Associated Person and Principal with an affiliated entity Welton Fund Advisors LLC since March 2014. Mr. Dew serves as the Chief Executive Officer of Welton Fund Advisors LLC. The main business of Welton Fund Advisors LLC is to function as a commodity pool operator for a registered investment company.
| | |
| Arthur F. Bell, Jr., CPA | | Independent Director |
Mr. Bell is an independent Director of Welton Investment Partners LLC’s board of directors. In his role, he provides independent feedback to the board and oversight of management. Mr. Bell has been the Founder and Managing Member of Arthur F. Bell, Jr. & Associates, L.L.C., Certified Public Accountants, since October 1974. Mr. Bell has over 37 years of experience in the alternative investment world and has been an active member of the MFA Executive Committee and Board of Directors since September 1994. Mr. Bell was also a member of the CFTC’s Global Markets Advisory Committee. He is currently a member of the Futures Industry Association Editorial Advisory Board, the American Institute of Certified Public Accountants (AICPA), the Pension Research Accounting Group (PRAG) based in London, the Alternative Investment Management Association (AIMA) also based in London, and is on numerous industry committees and working groups. Mr. Bell previously served as anon-executive Director of Tewksbury Capital Management Ltd. from June 2002 to May 2009. Mr. Bell is a graduate of Johns Hopkins University and a licensed CPA in Maryland and New York. He has been listed as a Principal with Welton Investment Partners LLC since July 2014.
| | |
| Donald H. Putnam | | Director |
Mr. Putnam serves on Welton Investment Partners’ Board of Directors. In his role, he provides feedback to the board and oversight of management. Mr. Putnam is the Managing Partner of Grail Partners LLC, a firm he founded in early 2005. Prior to Grail he led Putnam Lovell Securities which he founded in 1987. At Putnam Lovell he served as Chief Executive Officer, Chairman of the Board, and Managing Director in the firm’s investment banking group. Putnam Lovell was sold to National Bank Financial in 2002; until 2005 Mr. Putnam served as CEO and Vice Chairman of Putnam Lovell NBF. Prior to founding Putnam Lovell in 1987, Mr. Putnam was affiliated with and held senior positions at SEI Investments, SEI Financial Services Company and its various mutual funds, Catallactics Corporation (a subsidiary of SunGard), and Bankers Trust Company. Mr. Putnam serves on the investment committee of Ripon College and the boards of EMG and Manifold Partners. He also serves on the advisory board of Syntel Inc. Mr. Putnam studied at NYU. He has been listed as a Principal with Welton Investment Partners LLC since July 2014.
| | |
| Hunter L. Leighton | | Head of Infrastructure, Systems and Cybersecurity |
Mr. Leighton oversees Welton Investment Partners information technology infrastructure, systems administration and cybersecurity. He formerly worked as a Senior Trader with John W. Henry & Company Inc., bringing thirteen years of experience in the global futures and foreign exchange markets. Mr. Leighton holds a BS from the University of Florida. Mr. Leighton joined Welton Investment Partners in 2008.
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| | |
| Cornelius ‘Neal’ J. Howe | | Director of Investor Solutions |
Mr. Howe leads the Investor Solutions team overseeing the new business development effort for all of Welton’s strategies, and working closely with investors to develop the most optimal solutions designed to meet their return objectives. Previously he was Managing Director and Head of Distribution for Barclays Funds and Advisory. Mr. Howe has also worked with Merrill Lynch, Schroders and Lazard in senior Distribution roles. He holds a BS from Indiana University. Mr. Howe joined Welton Investment Partners in 2015.
| | |
| Todd W. Merrell, CPA, CA | | Director of Finance |
Mr. Merrell is responsible for all aspects of finance, middle- and back-office operations for Welton. This includes: corporate finance, fund accounting, fund administration, trade oversight, and investor relations. Prior to joining Welton, Mr. Merrell was an Assistant Vice-President with JPMorgan Chase Hedge Fund Services in Bermuda. Before JPMorgan, he worked for Deloitte in Canada where he qualified as a Chartered Accountant (CA). Mr. Merrell holds memberships with the Chartered Professional Accountants of Canada (CPA Canada) in both Bermuda and Saskatchewan. He earned a Master of Professional Accounting degree and a Bachelor of Commerce degree in Finance from the University of Saskatchewan. Mr. Merrell joined Welton Investment Partners in 2009.
Welton Investment Corporation
As the sole Managing Member, Welton Investment Corporation has been listed as a Principal with Welton Investment Partners LLC since July 2014.
Chalice Welton LLC
As a Member, Chalice Welton LLC has been listed as a Principal with Welton Investment Partners LLC since July 2014.
Legal Actions
There have never been any administrative, civil, or criminal proceedings (whether pending, on appeal or concluded) against Welton Investment Partners LLC or its Principals.
Trading Approach
The Welton Global Directional Portfolio (“GDP”) is proprietary and highly confidential to Welton. Accordingly, the description set out below is general only and is not intended to be exhaustive or absolute.
The GDP is a comprehensive managed futures program designed to reliably deliver the style class returns of directional managed futures accompanied by a sustainable performance advantage. The Global Directional Portfolio commenced trading client assets in June 2004.
The program employs exchange-traded futures contracts and foreign exchange instruments within global interest rate, currency, equity index and commodity markets. The inclusion or exclusion of certain markets in investment products and the instruments selected to trade those markets at various times is affected by many factors including, but not limited to, contract liquidity, Futures Commission Merchant constraints, regulatory requirements, market conditions and investment opportunity as determined by Welton. In addition, U.S. clients may be restricted from participating in certain markets not yet approved for use by U.S. regulatory authorities. In its sole discretion, Welton may adjust the systems, methodology, weighting, capacity and market composition (including the addition of markets not listed and/or the deletion of listed markets) in each investment product at any time. Unless otherwise directed by the client or the client’s clearing broker, positions will be offset on afirst-in,first-out basis.
GDP was conceived to provide investors with a source ofnon-correlated returns and long-term capital appreciation by capitalizing on the full range of investment opportunities available in the global futures and FX markets. GDP does this by employing a broadly diversified portfolio architecture that spans multiple asset classes, strategy types, holding periods and directionality (i.e., taking either long or short positions).
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To accomplish its goals GDP today trades 26 unique and diverse strategies, each attempting to capture a specific recurrent market phenomena generated by behavioural inefficiencies amongst capital market participants. These inefficiencies include, but are not limited to, under-anticipated price shifts from a variety of recurrent global macro-economic themes, carry differentials, structural financing premiums within and across markets, and the exploitation of a variety of short- and long-term statistical probabilities, among others.
Strategies are then systematically combined through atop-down Multi-Asset Class Correlation and Risk Optimization (MACRO) allocation framework to achieve GDP’s clear objectives over the long-term. This system was specifically designed to target maximum diversification to complement GDP’s momentum / trend following core, and embeds risk management at multiple layers within the portfolio for a stable portfolio risk profile over time.
By maintaining these core design principles, an unwavering focus, and a process of continuous improvement, Welton hopes to ensure that GDP will continue to deliver the dual traits of alpha plus portfolio-enhancing diversification that investors value.
Past Performance of Global Directional Portfolio Program
Welton Investment Partners LLC – Global Directional Portfolio Program
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2017 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | |
Monthly Rates of Return | | (%) | | | (%) | | | (%) | | | (%) | | | (%) | | | (%) | |
January | | | -0.76 | | | | 4.36 | | | | 7.56 | | | | -2.01 | | | | 2.86 | | | | -1.15 | |
February | | | 2.82 | | | | 7.83 | | | | -0.59 | | | | 5.68 | | | | -1.32 | | | | 1.31 | |
March | | | | | | | -5.34 | | | | 3.68 | | | | -1.43 | | | | 1.03 | | | | -1.41 | |
April | | | | | | | -0.44 | | | | -5.24 | | | | 6.13 | | | | 1.56 | | | | 0.85 | |
May | | | | | | | -2.94 | | | | -0.79 | | | | 5.17 | | | | -5.70 | | | | 1.33 | |
June | | | | | | | 11.26 | | | | -6.22 | | | | 3.04 | | | | -2.73 | | | | -4.71 | |
July | | | | | | | 2.38 | | | | 4.39 | | | | -3.59 | | | | -3.08 | | | | 5.27 | |
August | | | | | | | -3.90 | | | | -7.19 | | | | 5.31 | | | | -1.10 | | | | -1.26 | |
September | | | | | | | 1.10 | | | | 3.18 | | | | -1.14 | | | | -2.67 | | | | -2.86 | |
October | | | | | | | -4.98 | | | | -1.31 | | | | 0.45 | | | | 5.29 | | | | -3.95 | |
November | | | | | | | 0.82 | | | | 3.58 | | | | 8.92 | | | | 4.71 | | | | -0.85 | |
December | | | | | | | 1.78 | | | | -1.79 | | | | 3.95 | | | | -4.06 | | | | -0.62 | |
Compound Rate of Return | | | 2.04 | | | | 11.08 | | | | -1.91 | | | | 34.01 | | | | -5.73 | | | | -8.12 | |
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
| | |
| Name of CTA: | | Welton Investment Partners LLC |
| Name of program: | | Global Directional Portfolio Program |
| Inception of trading by CTA: | | February 1989 |
| Inception of trading program: | | June 2004 |
| Worst monthly drawdown*: | | -9.15% |
| Worstpeak-to-valley drawdown**: | | -33.18% |
| Totals Assets in the Program: | | $472,000,000 (as of February 28, 2017) |
| Total Assets Under Management of the CTA: | | $495,000,000 (as of February 28, 2017) |
| * | Draw-down means losses experienced by the trading program over a specified period. |
| ** | Worstpeak-to-valley draw-down means the greatest cumulative percentage decline inmonth-end net asset value due to losses sustained by the trading program during any period in which the initialmonth-end net asset value is not equaled or exceeded by a subsequentmonth-end net asset value. |
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Equinox Frontier Diversified Fund, Correlation matrix of CTA programs
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Correlation Coefficient Jan-2012 to Feb-2017 | | Aspect | | | Chesapeake | | | Crabel | | | Doherty | | | Emil van
Essen | | | Fort | | | H2O | | | Landmark | | | QIM | | | QuantMetrics | | | Quest | | | Welton | | | Winton | |
| | | | | | | | | | | | | |
Aspect | | | 1.00 | | | | 0.70 | | | | 0.28 | | | | 0.20 | | | | 0.12 | | | | 0.64 | | | | 0.01 | | | | 0.15 | | | | -0.15 | | | | 0.36 | | | | 0.76 | | | | 0.79 | | | | 0.83 | |
Chesapeake | | | 0.70 | | | | 1.00 | | | | 0.17 | | | | -0.00 | | | | -0.04 | | | | 0.54 | | | | -0.06 | | | | 0.15 | | | | -0.09 | | | | 0.24 | | | | 0.49 | | | | 0.62 | | | | 0.71 | |
Crabel | | | 0.28 | | | | 0.17 | | | | 1.00 | | | | 0.32 | | | | -0.06 | | | | 0.22 | | | | -0.05 | | | | 0.07 | | | | -0.04 | | | | 0.05 | | | | 0.37 | | | | 0.36 | | | | 0.32 | |
Doherty | | | 0.20 | | | | -0.00 | | | | 0.32 | | | | 1.00 | | | | -0.13 | | | | 0.07 | | | | -0.07 | | | | -0.05 | | | | 0.22 | | | | 0.21 | | | | 0.29 | | | | 0.26 | | | | 0.18 | |
Emil van Essen | | | 0.12 | | | | -0.04 | | | | -0.06 | | | | -0.13 | | | | 1.00 | | | | -0.17 | | | | -0.17 | | | | 0.25 | | | | 0.00 | | | | -0.11 | | | | 0.16 | | | | 0.03 | | | | 0.02 | |
Fort | | | 0.64 | | | | 0.54 | | | | 0.22 | | | | 0.07 | | | | -0.17 | | | | 1.00 | | | | -0.18 | | | | 0.23 | | | | -0.10 | | | | 0.25 | | | | 0.62 | | | | 0.69 | | | | 0.79 | |
H2O | | | 0.01 | | | | -0.06 | | | | -0.05 | | | | -0.07 | | | | -0.17 | | | | -0.18 | | | | 1.00 | | | | -0.04 | | | | -0.19 | | | | 0.10 | | | | -0.14 | | | | -0.28 | | | | -0.15 | |
Landmark | | | 0.15 | | | | 0.15 | | | | 0.07 | | | | -0.05 | | | | 0.25 | | | | 0.23 | | | | -0.04 | | | | 1.00 | | | | -0.11 | | | | 0.28 | | | | 0.18 | | | | 0.15 | | | | 0.14 | |
QIM | | | -0.15 | | | | -0.09 | | | | -0.04 | | | | 0.22 | | | | 0.00 | | | | -0.10 | | | | -0.19 | | | | -0.11 | | | | 1.00 | | | | -0.16 | | | | 0.09 | | | | -0.06 | | | | -0.14 | |
QuantMetrics | | | 0.36 | | | | 0.24 | | | | 0.05 | | | | 0.21 | | | | -0.11 | | | | 0.25 | | | | 0.10 | | | | 0.28 | | | | -0.16 | | | | 1.00 | | | | 0.23 | | | | 0.19 | | | | 0.29 | |
Quest | | | 0.76 | | | | 0.49 | | | | 0.37 | | | | 0.29 | | | | 0.16 | | | | 0.62 | | | | -0.14 | | | | 0.18 | | | | 0.09 | | | | 0.23 | | | | 1.00 | | | | 0.74 | | | | 0.76 | |
Welton | | | 0.79 | | | | 0.62 | | | | 0.36 | | | | 0.26 | | | | 0.03 | | | | 0.69 | | | | -0.28 | | | | 0.15 | | | | -0.06 | | | | 0.19 | | | | 0.74 | | | | 1.00 | | | | 0.84 | |
Winton | | | 0.83 | | | | 0.71 | | | | 0.32 | | | | 0.18 | | | | 0.02 | | | | 0.79 | | | | -0.15 | | | | 0.14 | | | | -0.14 | | | | 0.29 | | | | 0.76 | | | | 0.84 | | | | 1.00 | |
Equinox Frontier Balanced Fund, Correlation matrix of CTA programs
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Correlation Coefficient Jan-2012 toFeb-2017 | | Aspect | | | Beach Horizon | | | Crabel | | | Doherty | | | Emil van
Essen | | | Fort | | | H2O | | | Landmark | | | QIM | | | QuantMetrics | | | Quest | | | Welton | | | Winton | |
| | | | | | | | | | | | | |
Aspect | | | 1.00 | | | | 0.67 | | | | 0.28 | | | | 0.20 | | | | 0.12 | | | | 0.64 | | | | 0.01 | | | | 0.15 | | | | -0.15 | | | | 0.36 | | | | 0.76 | | | | 0.79 | | | | 0.83 | |
Beach Horizon | | | 0.70 | | | | 1.00 | | | | 0.20 | | | | 0.14 | | | | 0.17 | | | | 0.29 | | | | -0.07 | | | | -0.03 | | | | 0.10 | | | | 0.07 | | | | 0.62 | | | | 0.60 | | | | 0.56 | |
Crabel | | | 0.28 | | | | 0.20 | | | | 1.00 | | | | 0.32 | | | | -0.06 | | | | 0.22 | | | | -0.05 | | | | 0.07 | | | | -0.04 | | | | 0.05 | | | | 0.37 | | | | 0.36 | | | | 0.32 | |
Doherty | | | 0.20 | | | | 0.14 | | | | 0.32 | | | | 1.00 | | | | -0.13 | | | | 0.07 | | | | -0.07 | | | | -0.05 | | | | 0.22 | | | | 0.21 | | | | 0.29 | | | | 0.26 | | | | 0.18 | |
Emil van Essen | | | 0.12 | | | | 0.17 | | | | -0.06 | | | | -0.13 | | | | 1.00 | | | | -0.17 | | | | -0.17 | | | | 0.25 | | | | 0.00 | | | | -0.11 | | | | 0.16 | | | | 0.03 | | | | 0.02 | |
Fort | | | 0.64 | | | | 0.29 | | | | 0.22 | | | | 0.07 | | | | -0.17 | | | | 1.00 | | | | -0.18 | | | | 0.23 | | | | -0.10 | | | | 0.25 | | | | 0.62 | | | | 0.69 | | | | 0.79 | |
H2O | | | 0.01 | | | | -0.07 | | | | -0.05 | | | | -0.07 | | | | -0.17 | | | | -0.18 | | | | 1.00 | | | | -0.04 | | | | -0.19 | | | | 0.10 | | | | -0.14 | | | | -0.28 | | | | -0.15 | |
Landmark | | | 0.15 | | | | -0.03 | | | | 0.07 | | | | -0.05 | | | | 0.25 | | | | 0.23 | | | | -0.04 | | | | 1.00 | | | | -0.11 | | | | 0.28 | | | | 0.18 | | | | 0.15 | | | | 0.14 | |
QIM | | | -0.15 | | | | 0.10 | | | | -0.04 | | | | 0.22 | | | | 0.00 | | | | -0.10 | | | | -0.19 | | | | -0.11 | | | | 1.00 | | | | -0.16 | | | | 0.09 | | | | -0.06 | | | | -0.14 | |
QuantMetrics | | | 0.36 | | | | 0.07 | | | | 0.05 | | | | 0.21 | | | | -0.11 | | | | 0.25 | | | | 0.10 | | | | 0.28 | | | | -0.16 | | | | 1.00 | | | | 0.23 | | | | 0.19 | | | | 0.29 | |
Quest | | | 0.76 | | | | 0.62 | | | | 0.37 | | | | 0.29 | | | | 0.16 | | | | 0.62 | | | | -0.14 | | | | 0.18 | | | | 0.09 | | | | 0.23 | | | | 1.00 | | | | 0.74 | | | | 0.76 | |
Welton | | | 0.79 | | | | 0.60 | | | | 0.36 | | | | 0.26 | | | | 0.03 | | | | 0.69 | | | | -0.28 | | | | 0.15 | | | | -0.06 | | | | 0.19 | | | | 0.74 | | | | 1.00 | | | | 0.84 | |
Winton | | | 0.83 | | | | 0.56 | | | | 0.32 | | | | 0.18 | | | | 0.02 | | | | 0.79 | | | | -0.15 | | | | 0.14 | | | | -0.14 | | | | 0.29 | | | | 0.76 | | | | 0.84 | | | | 1.00 | |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | |
| | | | Equinox Frontier Funds |
| | | | (Registrant) |
| | | |
| Date: April 3, 2017 | | | | By: | | /s/ Patrick F. Hart III |
| | | | | | Patrick F. Hart III |
| | | | | | President and Chief Executive Officer of Frontier Fund Management, LLC, the Managing Owner |
12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| | | | | | |
| | | | Equinox Frontier Diversified Fund, |
| | | | a Series of Equinox Frontier Funds |
| | | | (Registrant) |
| | | |
| Date: April 3, 2017 | | | | By: | | /s/ Patrick F. Hart III |
| | | | | | Patrick F. Hart III |
| | | | | | President and Chief Executive Officer of Frontier Fund Management, LLC, the Managing Owner of Equinox Frontier Diversified Fund, a Series of Equinox Frontier Funds |
13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| | | | | | |
| | | | Equinox Frontier Balanced Fund, |
| | | | a Series of Equinox Frontier Funds |
| | | | (Registrant) |
| | | |
| Date: April 3, 2017 | | | | By: | | /s/ Patrick F. Hart III |
| | | | | | Patrick F. Hart III |
| | | | | | President and Chief Executive Officer of Frontier Fund Management, LLC, the Managing Owner of Equinox Frontier Balanced Fund, a Series of Equinox Frontier Funds |
14
