Due to fiscal and monetary stimulus, along with economic reopenings, the U.S. has been on a strong uptrend this year.  With expanding gross domestic product (GDP) and robust gains in the S&P 500 and DJIA, market drivers in Q3 are likely to transition from direct household stimulus and central bank liquidity toward business spending and productivity.

Casey Pond, principal of Flagship Capital out of Fort Lauderdale, Florida, says his hedge fund is favorably positioned as major allocators observe this transition.  He shared that “over the course of the past year, we have been seeing that institutional allocators have much more of an appetite for new launches and niche funds,” adding that “so with how we have strategically expanded our investment menu, it is also a bit of ‘right time, right place.’”

Flagship Capital, currently managing a proprietary, algorithm-based U.S. equity strategy and finalizing the rollout of a FOREX and crypto strategy in Q3, has witnessed this migration from the bigger, name-brand funds to a fund like his firsthand.  “There has been no singular reason why we are seeing this, but it is definitely an exciting time.  We are seeing growing interest from Family Offices, Pensions, and RIA’s as they rebalance through the summer months.”

With new fund launches and spinoffs seeing a significant increase since July of 2020, Flagship Capital has made an effort to differentiate itself by launching alternative strategies that mirror that current economic landscape.  “As we saw the current growing investor sentiment, FC began swiftly building out its investment menu.  Our leading Ternary Strategy is an algorithm-based U.S. Equity although its approach is very favorable in the environment we are currently in.”  FC Ternary, Mr. Pond shared, adds value in that it’s actively managed with an emphasis on fundamentals, which is important as financial conditions tighten and profit growth begins to slow.  In addition, the Ternary algorithm incorporates components from both technical and quantitative analysis as well, which Mr. Pond says “positions itself advantageously to maneuver current economic trends while maintaining a long-term outlook.”

“And as we do see our Ternary algorithm as an alternative strategy to maintain U.S. exposures, the rollout of both our FOREX and crypto strategies are great complements and further diversify our platform,” Mr. Pond shared.  The growing FOREX market has become the world’s largest market, largely due to its robust liquidity and access to leverage.  “We are seeing a lot of early success with the FOREX strategy, and it really complements our Ternary approach.   That aside, with investors looking to capture gains and ruminate alternatives that limit traditional market exposures, FOREX is a natural consideration.”

Casey Pond also shared Flagship’s excitement in getting crypto on their platform.  “Being in southeast Florida, it’s impossible not to feel the energy behind crypto right now.  So, we have been doing our due diligence by looking for strategic partnerships, and we are excited to officially be entering the space before the end of the 3rd quarter.”

With the increase in both new fund launches and the renewed institutional interest in niche funds, Flagship Capital continues to differentiate itself by staying aware of shifting investor sentiments and by mirroring that with their growing alternative investment strategies.