At Nighthawk Momentum Fund, we leverage a dynamic, long-short equity strategy to capitalize on market momentum, whether markets are rising or falling. With a proven track record of delivering significant returns, we take a disciplined approach to risk management while positioning ourselves in the best opportunities. Our active, hands-on strategy and careful market selection allow us to maximize returns while minimizing exposure to risk. Ready to align your investments with the forces driving the market forward? Join us today and discover the power of momentum.
Investment Philosophy
01
Momentum-Driven Approach
We harness the power of market momentum by employing a long-short equity strategy. This approach enables us to capitalize on opportunities in both rising and falling markets. By identifying stocks and ETFs with explosive momentum, we remain agile and responsive to shifting market dynamics, ensuring that our portfolio is positioned for optimal returns in any market environment.
02
Active and Dynamic Management
Our team of professional traders actively manages the portfolio in real time, continuously evaluating market conditions to make data-driven adjustments. We utilize a dynamic position-sizing strategy—starting with small positions to test market setups and scaling into successful trades. This disciplined approach allows us to maximize returns while limiting exposure to underperforming assets.
03
Setup Identification and Positioning
We rely on predefined criteria to identify high-probability market setups, such as specific price patterns, volume trends, and technical indicators. By focusing on these setups, we optimize entry and exit points, increasing the likelihood of success. Winning positions are scaled up, while underperforming ones are swiftly trimmed or exited to protect capital and maintain portfolio integrity.
04
Risk Management and Capital Preservation
Preserving investor capital is our highest priority. To manage risk effectively, we diversify our portfolio across a range of positions and sectors, avoiding excessive concentration in any single investment. During periods of heightened volatility, we may adjust our overall exposure or allocate capital to interest-bearing instruments to maintain stability and safeguard returns.
05
Data-Driven Decision Making
Our investment decisions are grounded in rigorous analysis and real-time data. By leveraging technical indicators and market trends, we identify high-conviction opportunities that align with our momentum-based strategy. This methodical, research-driven approach ensures superior, risk-adjusted returns for our investors over the medium to long term.
Our Winning Strategy
The simplest way to understand our strategy is to imagine it as the role of a head coach in basketball. As a coach, you have a roster of players, each with their strengths and weaknesses. If a star player pulls a hamstring, you bench them, regardless of their past performance. Similarly, we continuously evaluate our stock positions. Winning stocks get more ‘game time,’ while underperformers are ‘benched’ to ensure our portfolio remains optimized for performance. Just as winning coaches make these decisions at a second’s notice, so do our professional traders.
The Right Markets, Sectors, and Stocks for Maximum Growth.
Our Strategic Edge
Right Market: We wait for the optimal trading environment, such as when markets turn bullish and market breadth indicates a majority of stocks are gaining in price and trading above their 50-day moving average.
Right Sectors: We invest in sectors with the greatest potential for outsized returns and overperformance.
Right Stocks: We identify and invest in the top-performing stocks within those sectors.
Risk Management
Approach
Our strategy involves taking small initial positions to minimize downside risk. If positions prove successful, we add to them while maintaining the original risk. Conversely, if positions are not performing as expected, we trim or exit them immediately, generally using a 3% loss as a rule of thumb. This disciplined approach ensures we manage risk effectively while seeking to maximize returns.
During periods of market turbulence, we prioritize capital preservation and allocate funds into short-term interest-bearing instruments, such as Treasury bills, certificates of deposit (CDs), and money market accounts.
Dynamic Allocation Strategy
Our dynamic allocation strategy is a key component of our risk management approach. Here’s how it works and how it minimizes losses:
01
Initial Position Sizing
We start with small initial positions to test the market and gauge the effectiveness of our entries. This minimizes potential losses if the market moves against us.
02
Scaling In
As a position proves successful, we gradually increase our exposure by adding to the position. This allows us to capitalize on winning trades while maintaining the original risk level.
03
Risk Adjustment
By scaling into positions, we can adjust our risk dynamically. If the market conditions change or the stock’s performance deteriorates, we can quickly trim or exit the position to protect our capital.
04
Market Conditions
We monitor market conditions and adjust our allocation accordingly. During periods of high volatility or unfavorable market conditions, we reduce our overall exposure to preserve capital.
Our Risk Management Philosophy
Imagine a surfer heading out to the ocean. They don’t paddle out when the waves are flat or the conditions are rough; they wait for the right day, when the surf is up and the conditions are favorable. Similarly, our approach to risk management is about waiting for the optimal conditions—when the odds are truly in our favor. We don’t take unnecessary risks during unfavorable market conditions; instead, we act decisively when the timing is right, maximizing our chances for success while protecting your capital.
Ideal Investor
Our ideal investor is someone who values the benefits of active management and seeks a dedicated team to diligently grow their hard-earned money. Here’s a more detailed profile:
01
Active Management
You want a team that actively manages your investments, making real-time decisions to optimize returns and manage risk. You appreciate the hands-on approach and the expertise that comes with professional management.
02
Risk and Return
While we employ robust risk management strategies to protect your capital, we do not settle for undersized returns. You understand that effective risk management is a tool to enhance, not limit, potential gains.
03
Investment Horizon
You have a time horizon of at least two years. You are looking for outsized returns, and understand that this involves a commitment to the strategy and patience to see it through.
04
Investment Horizon
You are comfortable with short-term fluctuations and understand that a 5, 10 or more percentage drawdown could be part of the journey towards achieving outsized annual returns. You trust in our strategy and are confident in our ability to navigate market volatility to deliver superior performance over the long term.
05
Commitment to Growth
You are seeking aggressive growth and are willing to invest in a strategy that aims to capitalize on market opportunities aggressively.
If this sounds like you, the Nighthawk Momentum Fund could be the right fit for your investment goals. Join us as we strive to deliver superior, risk-adjusted returns through our dynamic and disciplined approach.
Ready to Elevate Your Investments?
Take the leap towards exceptional returns.
We’re excited to welcome you aboard!