PECUS L/S BITCOIN PROGRAM
Strategy Overview
The trading strategy for the OBIG Pecus L/S Bitcoin Program is approximately 50% discretionary and 50% systematic. The program will initially trade CME traded bitcoin futures and options on futures of Bitcoin as additional liquidity develops. As other Bitcoin exchanges develop and if the CME begins trading other cryptocurrencies, the traders may consider those as well. Both short and long positions in Bitcoin will be equally considered. Traditional short, intermediate and long-term trend and momentum indicators will be used. Order flow and delta divergences from other major crypto venues and exchanges is a key component of the discretionary trading. The strategy will also incorporate global macro fundamentals and significant global macro events that the traders believe will have an impact to the price of Bitcoin. The holding period of each trade may last from 1 day to a couple weeks or longer if a significant trend develops. Lastly, it’s anticipated that the average margin to equity of the strategy will be greater than 50%. The unit size will be $500,000 and maximum position sizing, long or short, is 10 Bitcoin futures contract per unit.
Program Details
Program Inception: Began trading September 2019
Portfolio Manager: John O'Brien Jr.
Trader: Robert Grosulescu
Strategy AUM: $1,500,000 (as of 5/15/20)
Memberships: National Futures Association (NFA)
Total AUM of Firm: $31 Million
RT/Million: 3800 RT / Million
Average M/E: 30%*
*30% is average. However, this strategy is a single market with high margin requirements. M/E may be as high as 70% at any given time.
Investment Terms
Minimum Investment: $500,000
Incentive Fee: 25%
Management Fee: 1%
Portfolio Manager and Trader Bios
John W. O’Brien, Jr – CEO of OBIG and Portfolio Manager
John O'Brien Jr. is the CEO of the O’Brien Investment Group and is responsible for operational and trading oversight, risk management, and day-to-day management of the Advisor. He is also portfolio manager for the O’Brien Investment Group Pecus L/S Bitcoin Program. Previously, Mr. O’Brien was employed as a floor broker and trader with R.J. O’Brien & Associates from June 2003 to March 2008 . Mr. O’Brien was an investment analyst at O’Brien International, LLC, analyzing global macro-economic themes, performing due diligence on hedge funds and CTAs and investing the firm’s capital from March 2008 until May 2012. From May 2012 to December 2018, Mr. O’Brien served as CEO of Clark Capital Management, Inc. Mr. O’Brien also serves as managing partner for WAG Holdings, LLC, a real estate investment group since December 2010. Mr. O’Brien has served as CEO of the OBIG since inception and the launch of their first trading program, Quantitative Global Macro, in 2017. Mr. O’Brien graduated from DePaul University in March 2008, with a Bachelor’s degree in Economics.
Robert Grosulescu, Trader
In December 2019, Rob joined the O’Brien Investment Group as a trader for the OBIG Pecus L/S Bitcoin Program. Prior to that, Rob was employed at Chicago Crypto Capital as a cryptocurrency trader (2019). Prior to that, Rob was self-employed as a game marketplace developer for the gaming platform Steam. Rob attended the University of Illinois at Urbana-Champaign where he studied Finance, Economics and Supply Chain Management from 2016 to 2018.
Yiqun (Ethan) Mou, Ph.D., Senior Quantitative Analyst
Dr. Mou has been a Senior Quantitative Analyst at OBIG since 2015. He has served in a similar capacity for Clarke Capital (an affiliated company of OBIG) since 2013 and is responsible for performing a wide range of research-related duties associated with quantitative trading. From 2011 to 2013, Dr. Mou worked at Bank of America Merrill Lynch in Hong Kong as FX and Rate Strategist. Dr. Mou received his Ph.D. in Finance from Columbia University, his MS degree in Statistics from University of Minnesota-Twin Cities, and his BA in Math from Tsinghua University.
