Hawk Alpha Discovery

Best Opportunities
Well Diversified
Low Maintenance

The portfolio is an all capitalization long short equity portfolio utilizing value added options strategies where appropriate.  This strategy is managed by Joe and Tommy and is designed for a Qualified Investor as defined by the SEC.  There are two variations of the portfolio allowing for utilization in both brokerage and IRAs or other qualified retirement accounts with adjustments to risk parameters and margin use.  The portfolios follow the investing strategy Joe Kunkle has been following since shortly after beginning OptionsHawk.com where he originally started to spell out the values behind such an approach in Methods To My Madness – Trading Options Flow in 2012 and then followed up with Categorizing the Types of Options Flow Analysis and the Research Process in early 2014.  Since then Joe has continued to hone his multi-strategy approach into the system we use in this strategy.

Exclusive OptionsHawk curated ideas in a Separately managed Account

Portfolio Structure

Core Holdings

top fifteen ideas for the quarter ahead driven by a combination of technical analysis, fundamental analysis, and options flow positioning. These names will be curated from the Annual Hawk Top Stocks. These are equity positions that can utilize options for protection and/or income strategies (covered calls, collars, married puts) if the environment calls for it or there is an expected event driven catalyst such as earnings.

Active Equity

During the quarter there are often multiple swings and rotations on smaller scale and timeframes. These positions are usually still fundamental leaders, but more so weighed on their technical stance, institutional options flow and upcoming events. Often this combination can provide fairly fast and defined moves when timed correclty.

Option & Event Opportunities

Short term event driven opportunities for the portfolio can add another level of alpha as we build. These positions tend to be more asymmetrical risk to return putting small amounts of the portfolio to work where if we are wrong it is no big deal, but when we are right it can be noticeable. These are much smaller positions and shorter time frames in general. this would include tagging along with large institutional options flow, earnings movement forecasts, and short term known events on the horizon.

Small Cap Gems

One of Joe's favorite part of the deep dive a fundamental and theme analysis he is known for is pulling out these small cap gems. These are is the often unknown companies he uncovers during his theme research. Many are in the very early stages, and often pop out to him before they make their big moves. This is another area of the portfolio that tends to have a much smaller allocation, but just capturing a few here or there makes it all worth it.

Portfolio Hedge

Putting all these components together with a signal driven broad market put hedge.  This allows us to hedge out current portfolio risk as well as help pair risk in opportunities that present themselves at strategic levels during market weakness.  Hedge is like your insurance, it pays off the most when you don’t need to collect the benefit.

This proprietary situational hedging strategy we apply across our Hawk Portfolios.  These hedges utilized put options on major index ETFs when our signal is triggered.  This allows us to hedge out market risk at times we have found historically the most difficult for equities to outperform keeping our mindset clear to focus on the best ideas whenever the markets offer them.

How can our Portfolios Help You?

We understand how to structure portfolios for your relative situation. We have multiple portfolios allowing us to fully structure a portfolio fit to your specific situation and relative to your goals that provides you with piece of mind knowing someone is alway on duty.