Group Origins
MCD Capital was founded in 2021 as a university investment club focused on systematic trading research in derivatives. The team, composed of Doctorate, Bachelor's, and Master's students from top UK universities, brought together diverse disciplines like Quantum Physics, Computer Science, and Finance. After months of testing, the group pooled capital and began live trading in February 2022, specializing in NYSE and CME Options and Futures.​
In 2022, we formed a board of advisors including experienced industry professionals to ensure robust risk management and strategic decisions. By 2023, we partnered with proprietary trading firms and institutional investors, growing our managed capital from $1M to over $20M by 2024. Today MCD Capital is proudly under the umbrella of the ARB Asset Management and ARB Trading Group multi-manager platform.
Firm Philosophy
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MCD Capital focuses on finding short term inefficiencies, exploiting them systematically over time by building a decorrelated and complementary portfolio consisted of 2 trading styles.
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The firm is organised in 2 strategy books, each book specialises in different assets, research & trading styles. The first being the “Delta” Multi-Day (slow) book which trades CME Option synthetic combinations with discretionary execution supported by a quantitative framework, and the Intraday (fast) is the “Quant” book specialising in statistical arbitrage and trend-following algorithmic strategies on CME Futures & NYSE equities.
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The fund strategy is comprised of 2 complementary trading books. Using margin-based allocation is a critical component of our strategy. Each alpha within our portfolio has its own capacity limitations, merging the books and using the “fast book” as an alpha machine allows us to scale as a whole by diversifying allocations rather than merely increasing position sizes.
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Our goal is to minimize annualized volatility and maximize our Sharpe ratio, targeting an inter-strategy correlation of -0.20 to 0.20, this target ratio is key as each book can offset each others losses without hurting their gains ensuring a smoothed out performance curve of the overall portfolio. This approach enables adaptation to fast changing market conditions, with different strategies underperforming or outperforming as the market evolves, ensuring continuous trading opportunities and minimizing inactivity periods. Allocations are re-evaluated bi-weekly based on current market volatility and trends.
OUR PARTNERS
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LEGAL DISCLOSURES
The information contained herein is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities, investment products, or services. Investments involve risk, including the possible loss of principal. Past performance is not indicative of future results.
The investment strategies, techniques, or philosophies discussed may not be appropriate for every investor and are subject to change without notice. Clients should consider their investment objectives, risk tolerance, and financial circumstances carefully before investing. All investments carry risk, and there is no guarantee that any investment strategy will achieve its objectives.
The contents of this material should not be construed as legal, tax, or accounting advice. Clients should consult their own professional advisors on these matters. Registration as an investment adviser does not imply a certain level of skill or training. Any references to market or economic trends are based on current information, which may be subject to change without notice.
MCD Capital is not authorized or regulated by the UK Financial Conduct Authority (FCA) or any other financial services regulatory authority. MCD Capital does not act as a custodian of client funds and does not hold or safeguard assets. The firm provides trading services only and operates on an execution and advisory basis. Any investments made through MCD Capital remain in the client’s own account with their appointed custodian or broker. Clients should be aware that the absence of FCA regulation may affect the level of investor protections available to them. MCD Capital operates on the ARB Asset Management platform for the provision of its services.
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FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISKS. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS AND IN ORDER TO INVEST IN THE COMPANY. DO NOT TRADE OR INVEST WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS DOCUMENT AND ITS CONTENTS ARE NEITHER A SOLICITATION NOR AN OFFER TO BUY OR SELL FUTURES, STOCKS OR OPTIONS ON THE FUTURES OR OPTIONS MARKETS. . THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.