Matt & Mike Thompson

Portfolio Managers

Alpha Seeker™, Tactical Beta, and Tactical Q Strategies

Matt Thompson

D. Matthew Thompson, CFA
Alpha Seeker™, Tactical Beta, and Tactical Q Strategies Co-Portfolio Manager

Matt oversees the Volatility Dashboard and acts as Co-Portfolio Manager of the Alpha Seeker strategy, the Tactical Beta strategy, and the Tactical Q strategy.

Matt has over 20 years of capital markets and investing experience, focusing on futures trading with an emphasis on VIX-related exchange-traded products. Matt’s perspective and insights on risk, the VIX and the broader volatility ecosystem are sought after by peers and members of the financial press alike, with contributions to articles in Barron’s, the Wall Street Journal and Reuters.

Matt served in an analyst role at Envestnet before joining forces with his brother Mike as the head of operations at Premier Asset Management LLC, a $500M investment advisor spun out of Northern Trust. Subsequently, Matt served in business development and financial modeling roles for a Chicago-based start-up derivatives exchange before being recruited to a family office in 2008 where he co-developed Thompson Capital Management’s (TCM) Volatility Dashboard during the Financial Crisis. Matt subsequently traded the VIX trading strategy directly in the futures market for the proprietary trading desk of ED&F Man Ltd and as a Commodity Trading Advisor, first as a principal of Advocate Asset Management LLC and subsequently for Typhon Capital Management LLC.

In 2015, Matt assumed the role of Co-Chief Investment Officer with his brother at Kaizen Advisory LLC. He co-developed the Alpha Seeker, Tactical Beta, and Tactical Q strategies with his brother Mike. Matt has a B.S. in Economics from the University of Illinois at Urbana-Champaign. Matt is a member of the CFA Society of Chicago.

Mike Thompson

Michael A. Thompson, CFA
Alpha Seeker™, Tactical Beta, and Tactical Q Strategies Co-Portfolio Manager

Mike has over 23 years of experience constructing and managing portfolios with a focus on volatility and risk management strategies. Mike is a co-portfolio manager of the Alpha Seeker strategy, the Tactical Beta strategy, and the Tactical Q strategy.

Early in his career, his work included portfolio management roles at The Northern Trust, William Blair and Premier Asset Management LLC, a $500M investment advisor spun out of Northern Trust. Mike later provided derivatives modeling expertise to a start-up derivatives exchange in Chicago before being recruited by a family office where he co-developed a VIX trading strategy that began trading on a proprietary basis using VIX ETPs in October 2011.

In 2013, Mike began trading the strategy directly in the futures market for the proprietary trading desk of ED&F Man Ltd and as a Commodity Trading Advisor, first as a principal of Advocate Asset Management LLC and subsequently for Typhon Capital Management LLC.

In 2015, Mike assumed the role as Co-Chief Investment Officer with his brother at Kaizen Advisory LLC. He co-developed the Alpha Seeker, Tactical Beta, and Tactical Q strategies with his brother Matt. Mike has a B.S. in Economics from the University of Illinois at Urbana-Champaign. Mike is a member of the CFA Society of Chicago.

Strategies

Alpha Seeker™

The Alpha Seeker™ strategy was launched in October 2011 and employs a tactical approach†. Its exposure is not always long or short, but moves across a spectrum of exposures by analyzing the dynamic movement of the Chicago Board Options Exchange (Cboe) Volatility Index (the “VIX”), the volatility marketplace and, in particular, the evolving shape of the VIX futures curve.

Because of its historic diversification attributes and potential for left tail risk mitigation, an allocation to the Alpha Seeker strategy may be appropriate as a diversifier to a beta-rich equity portfolio or in the case where a combination of equities and fixed income is not yielding the expected risk-adjusted return benefits.

Tactical Beta

The Tactical Beta Strategy was launched in November 2016†. The strategy provides constant exposure to instruments linked to the performance or volatility of the S&P 500®Index (S&P 500) unless or until U.S. equity market volatility signals ‘risk off’. When that happens, exposure to the S&P 500 is reduced to seek to preserve capital. The signal that triggers a risk-off position is based on proprietary statistical analysis and manager skill and experience. The Tactical Beta Strategy seeks to provide passive exposure to the S&P 500 with tail-risk management…thus the name “Tactical Beta”. Actual positions are determined based on the skill and experience of Matt and Mike Thompson who developed the Tactical Beta strategy while working at previous asset management firms and since then have been jointly and primarily responsible for managing the strategy.

Tactical Q

The Tactical Q strategy provides hedged exposure to instruments linked to the NASDAQ 100 Index (Nasdaq 100) when market volatility signals crisis conditions. At all times, Tactical Q has exposure to the NASDAQ 100 of between instruments linked to 80% and 120% and can be expected to have a high correlation to the NASDAQ 100 when volatility alarm bells are muted. However, when the volatility marketplace (VIX options and futures), and in particular the shape of the VIX futures curve signals distress, the Tactical Q strategy will apply a long volatility hedge.

The Tactical Q strategy launched in May of 2020†. Financial advisors, institutional investors and model-portfolio platforms may choose to allocate to Tactical Q as an alternative to passive, long-only exposure to the NASDAQ 100 through QQQ or other products that track the NASDAQ 100.

We believe that tactical adjustments around beta are good sources of alpha.

Our Philosophy

†LHA has an exclusive license from Thompson Capital Management (TCM) to employ and market the Alpha Seeker, Tactical Beta, and Tactical Q strategies.