SOURCE: Pardo Capital

Pardo Capital

February 14, 2011 10:50 ET

Pardo Capital Reports 2010 Annual Return of 25% From Flagship XT99 Diversified Product

Introduces New Multi-Advisor, Multi-Strategy Managed Futures Product

CHICAGO, IL--(Marketwire - February 14, 2011) - Pardo Capital Limited (, a commodity trading advisor (CTA) providing managed futures products to qualified eligible persons (QEPs), reported 2010 annual return of 25% from its flagship XT99 Diversified trading program. Pardo Capital Limited was established in 1996 and has a long and successful track record in the managed futures sector. 

"Managed futures have recently stepped into the spotlight among alternative investments demonstrating their potential to deliver superior returns, even during periods of volatility, political uncertainty and poor performance in bond and equity markets," said Robert Pardo, President and Founder. "Futures may provide direct access to global macroeconomic trends, from commodities to currencies and stock indices.

"For example, consider our flagship trading strategy, XT99 Diversified, a top-ranking managed futures program, which generated a return of 25.26% in 2010." Since inception in June 1999, XT99 Diversified has generated a 19% annualized rate of return. The product has been repeatedly ranked in the Top 20 in a number of CTA performance categories by BarclayHedge. Its proprietary models and research methodology include technical and pattern analysis, advanced numeric and statistical methods, optimization methodology and Walk-Forward Analysis™.

To expand its ability to provide managed futures exposure to clients, Pardo Capital Limited established Pardo Financial Group LLC (, which recently launched the Pardo Strategic Alpha Fund, a multi-advisor managed futures product for QEPs. This product's multiple strategies attempt to exploit price movements and inefficiencies in global futures markets. This approach capitalizes on a source of alpha which thrives, unlike the stock market, on all types of market conditions. 

Managed futures rely on regulated CTAs who generally use proprietary trading strategies to invest in futures contracts across a broad spectrum of commodities, metals, currencies, equity indices and interest rate products. Pardo Financial Group allocates assets across a team of such CTAs. The CTAs chosen by Pardo Financial Group each have a unique approach to the markets and an original and well-funded research and development process. These seasoned managers bring experience ranging from institutional trading and market making to financial engineering to quantitative modeling.

"We believe a managed futures asset allows investors to access potentially exceptional returns offered by futures markets, combined with strong risk management and independent and instantaneous valuation of positions and performance," explained Pardo. "We utilize a blend of extensive quantitative analysis and management capabilities to create an investment product that offers flexibility to access worldwide macroeconomic opportunities."

The multiple-strategy approach allocates investor assets across unique systematic CTA strategies implemented on multiple time frames and applied to over 40 liquid markets worldwide. These strategies include trend following, counter-trend, intra market spreads, pattern recognition and volatility arbitrage. By combining unique and diverse managers and methodologies, Pardo Financial Group offers investors true portfolio diversification and comprehensive risk management, and with daily transparency.

"A successful managed futures product relies on a sophisticated array of technological tools, algorithmic modeling, and experienced managers to recognize and capitalize on these opportunities," Pardo explained. "We have been employing and continually enhancing these capabilities for more than a decade."

Pardo Capital Management Team

With more than 30 years of futures industry experience, Robert Pardo has established a reputation for success and innovation. As a software developer, consultant, author and CTA, he has made numerous contributions to the industry-wide use of algorithmic software applications and the many forms of automated trading now in use globally. A graduate of Northwestern University, Pardo has received multiple honors as a top trader, published more than 13 trading software applications, and written two authoritative books on trading strategy development and validation.

Jeffrey Roy, Principal of and Director of Strategic Development for Pardo Financial Group LLC, has been a futures industry professional for 20 years, during which he has actively traded futures markets, played key roles in the growth of several futures brokerage firms, consulted to institutional trading firms on quantitative trading strategy development and analysis, and was the architect and COO of a quantitative CTA asset management firm. A graduate of Loyola University of Chicago, he has served as a trading strategy portfolio consultant for individual traders, multi-national trading firms and banks.

Inanc Tarhan, PhD, is the Senior Quantitative Research Scientist for Pardo Capital, and is responsible for programming, advanced research and development and emerging technologies. He has more than eight years of research and trading experience in the futures markets, with experience designing successful systematic quantitative trading strategies and developing automated algorithmic trading systems. He is a graduate of Bogazici University in Istanbul, Turkey with a B.S. in Electrical Engineering and Physics, and received his doctorate in Physics from the University of Delaware.

Chris Pardo, Director of Business Development, is responsible for driving strategic initiatives for business development and marketing as well as providing back-office support. He oversees and monitors Pardo Capital's proprietary trading systems and software. He is a graduate of Indiana University.


This document is not intended as, and does not constitute an offer to sell or solicit any person to purchase an investment. Any mention of an investment named in this document is neither a recommendation nor a solicitation. Any offer or solicitation must be made only by means of a delivery of a disclosure document and/or other informational document prepared by Pardo Capital Limited or its affiliates. No person should rely on any information in this document, but should rely exclusively on a disclosure document and/or other informational document prepared by Pardo Capital Limited or its affiliates when considering whether to invest.

Contact Information

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    Chris Pardo