Welcome to Diamond Capital Management

Where clients' interests and capital preservation are the top priority

Targeting

A

bove Average Returns

& Below Average Volatility

.

 

Diamond Capital Management is dedicated to offering clients well-managed alternative investment products that offer predictable returns and protection of principal through the proper application of money management, and continuous evaluation of risk exposure. Our investment process is underpinned by thorough daily data extraction and analysis, as well as regular back-testing, scenario analysis, and simulations using custom-built software. We monitor all accounts and carry out performance calculations daily. We at Diamond Capital Management take personal pride in managing accounts with our clients' best interest in mind. 

We invite you to investigate Diamond's strategies further and discover a non-correlated alternative investment product to compliment your long term investment goals. To learn more about Diamond Capital and the potential value DCM can add to your overall portfolio, please explore our site, or contact us directly.

Our Philosophy

Our clients' interests are our first priority. Capital preservation and rigorous risk management are fundamental when seeking to achieve a sound and timely strategic investment approach, which will in turn produce better-than-average growth. We believe that returns must be worthy of their associated risks. We know that what has worked in the past will not necessarily continue to work in the future, therefore we continuously strive to better ourselves and improve our trading programs in order to stay ahead of the curve.

 

Diamond Capital Management, LLC, ("DCM") is registered with the Commodity Futures Trading Commission ("CFTC") as a Commodity Trading Advisor ("CTA") and is a member of the National Futures Association ("NFA").

Past performance is not necessarily a representation of future results. Alternative investments such as managed futures investments are speculative, involve substantial risk, and are not suitable for all investors.

 

Enhanced S&P Program (ESP)

ABOUT THE PROGRAM

This program is currently offered to investors in the form of separately managed accounts. Diamond Capital Management's Enhanced S&P Program ("ESP") trades the U.S. domestic large-cap stock sector via S&P 500 futures and its options. It's a systematic, proprietary rules-based investing program targeting both absolute and competitive returns relative to the S&P 500 Index with lower volatility and drawdowns.

ESP seeks sustainable, long-term growth for investors by combining two proven and independent strategies:

 
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TREND FOLLOWING SYSTEM

Trend following is a method of trading which seeks to establish and maintain market positions based on major price movements. Our system first determines whether the S&P market is in a bull or bear trend, then trades with the trend until a stop condition is reached. While the core of our trend following system is long-term in nature, proprietary short-term counter-trend signals may be used to exit a position, create a neutral position, or trade against the trend on a short-term basis.

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PREMIUM CAPTURE SYSTEM

This system consists of writing deep out of the money covered and/or uncovered options to capture premiums, providing a more balanced and predictable source of returns. (Option positions may also increase the risk of market exposure.) Every period, options that meet proprietary risk parameters are written with the goal being to capture the premium by letting them expire, or occasionally by purchasing them back at a profit. Strict risk controls are used to limit the downside risks and achieve a desirable risk/reward ratio.

MONTHLY PERFORMANCE OUTLINE

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YEAR
2024 -0.52 2.42 1.42 -4.68 4.08 2.39 0.63 -9.58 1.54 -0.71 -3.71
2023 -0.64 -1.66 -0.53 1.11 0.10 1.94 1.51 -1.32 -2.27 0.28 2.60 2.37 3.41
2022 -7.08 -0.29 -1.22 -1.18 3.13 -4.63 4.90 -1.28 1.70 -0.64 -1.30 -0.66 -8.73
2021 -0.40 1.79 0.57 2.81 0.58 1.37 1.00 1.60 -2.77 4.14 0.09 2.38 13.79
2020 0.82 -5.09 -3.21 -0.69 1.24 -0.17 4.18 3.79 -3.51 2.19 1.48 2.76 3.35
2019 3.99 3.73 1.43 3.08 -6.77 6.85 1.53 -6.99 0.21 -1.74 0.52 3.16 8.33
2018 4.52 -5.28 0.80 1.44 1.65 1.21 2.39 3.04 0.61 -5.41 0.44 -8.06 -3.45
2017 1.38 2.48 0.44 0.55 -0.08 0.61 1.82 0.57 1.63 1.82 2.44 1.11 15.78
2016 -10.44 -0.06 3.70 0.57 2.28 1.79 2.77 0.32 0.84 -0.87 0.18 0.68 1.02
2015 -2.12 6.09 -0.71 1.97 0.30 -0.64 1.76 -5.33 1.12 3.12 1.10 1.11 7.59
2014 -3.71 4.89 1.91 1.78 2.57 1.87 -1.43 5.30 0.42 -1.65 2.17 -0.81 13.73
2013 4.03 0.59 1.94 2.37 1.47 -0.76 4.93 -1.43 4.43 2.99 1.09 2.22 26.42
2012 2.80 4.43 3.89 0.98 -0.61 3.90 0.38 1.16 1.92 1.79 1.46 -0.14 24.14
2011 1.43 2.79 2.76 2.41 0.05 -2.53 -2.34 -3.91 2.81 5.71 -0.40 -0.31 8.39
2010 0.31 -0.03 7.40 0.38 -7.37 -3.72 5.77 -0.04 1.44 3.36 1.12 3.80 12.21
2009 2.32 2.24 1.77 6.46

The above performance is a composite of net performance for open accounts at the time of reporting. Performance may not be the same for all accounts controlled by the Advisor due to, among other things, account size, the time at which the account was opened or closed, and differing levels of leverage. Investment in these strategies are speculative and involve a high degree of risk, including an inherent unlimited risk of loss associated with writing naked options. There can be no assurance that DCM's investment objectives will be achieved, and investment results may vary significantly year to year. Please refer to the current disclosure document for more information and risk disclosure prior to making an investment decision.

DIAMOND ENHANCED SOLUTIONS (DES)

ABOUT THE PROGRAM

 

Diamond Enhanced Solutions (DES) Program offers a combination of the Enhanced S&P Program (ESP), as described above, in conjunction with short-term trading in multiple typically non-correlated systems to provide diversification of markets traded and applied time-frames for a comprehensive approach and reduced volatility.

 
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 SHORT-TERM TRADING SYSTEMS

The short-term trading systems within the Diamond Enhanced Solutions Program (DES) actively trade the Nasdaq and S&P futures markets and selectively trades these markets over a short-term time horizon. Typically, the systems  utilize the micro, or in some cases depending on account size, the mini sized contracts and positions are only held intra-day with no overnight exposure. Signals are generated off a macro directional indicator, then filtered for executed trades.  The filters are based off short-term moves and a variety of technical indicators.  The short-term systems generate signals that include mean reversion components as well as short-term trend following and counter trend to the macro directional indicator.  Various risk and price volatility measures are utilized for determining position size, entry and stop levels. Positions are actively monitored with tight risk controls. 

In less frequently occurring environments, short-term S&P futures (micro or mini depending on account size) positions could be held overnight.  This would occur under certain economic conditions and is designed to trade overbought and oversold opportunities in the S&P index. Positions are initiated after an indication of a “bottoming” process in the case of an oversold market, and “topping” process for an overbought market.  Positions tend to last on average 2 weeks until market prices become more neutral, or is stopped out in the case of continued selling in an oversold market, or continued buying in an overbought market. 

The short-term trading in these systems has historically been negatively correlated to Diamond’s ESP strategy based on hypothetical back-tested trading beginning in October 2009 when the ESP began trading client accounts.

The trading strategies and systems employed by Diamond Capital Management may be revised over time as a result of ongoing research and development aimed at devising new strategies and improving current methods. Future strategies and systems may differ significantly from those currently in use due to this research.

DES PERFORMANCE OUTLINE

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YEAR
2024 -0.23 2.41 1.57 -5.32 3.13 2.13 1.30 -8.93 0.60 -1.34 -5.23
2023 -0.18 -1.80 0.26 -0.41 0.65 1.80 1.20 -1.03 -1.95 0.55 2.42 2.09 3.54
2022 -6.80 -0.48 -1.21 -1.26 3.58 -5.00 5.04 -1.43 2.74 0.10 -2.30 -0.14 -7.22
2021 -0.11 1.54 -0.65 1.83 0.03 0.61 0.41 1.42 -3.32 4.55 0.07 2.39 8.93
2020 -4.79 -0.73 0.32 -0.97 4.10 3.36 -5.68 1.57 0.94 2.07 -0.29

Past performance is not necessarily indicative of future results; an investment in the program offered hereby is speculative and involves a substantial risk of loss.

Our Team

Kelly FarrellKelly's 30 years of investment experience began in 1987 after graduating from University of Wisconsin with a Business Administration degree. Kelly's experience includes managing a variety of areas at Firstar Bank, including the broker d…

Kelly Farrell

Kelly's 30 years of investment experience began in 1987 after graduating from University of Wisconsin with a Business Administration degree. Kelly's experience includes managing a variety of areas at Firstar Bank, including the broker dealer trading desk and fixed income trading desk, later acting as lead fixed income trader and institutional sales.

In 2001, Kelly became registered as a NFA Associated Member, and later became an AP and principal of Diamond Capital Management in November 2002.

Alan HuAlan Hu joined Diamond Capital Management in 2013, with a background in statistics, economics, and psychology from UC Berkeley. He has helped to codify the subsystems of Diamond's ESP program, and continues to develop the program through perp…

Alan Hu

Alan Hu joined Diamond Capital Management in 2013, with a background in statistics, economics, and psychology from UC Berkeley. He has helped to codify the subsystems of Diamond's ESP program, and continues to develop the program through perpetual research and analysis.

Since 2014, Alan has headed trading and risk management for the ESP program.

Documents

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Disclosure Document

We invite you to investigate Diamond's strategies further and discover a non-correlated alternative investment product. Please refer to the disclosure document for more information and risk disclosure prior to making an investment decision.

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Account Forms

In addition to filling out these forms, you will need to instruct your broker to open an account for Diamond to trade. If you currently do not have a relationship with a FCM, please contact us and we would be happy to assist you.

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Performance Updates

Our monthly performance update also includes brief description of the program, a sample of performance awards, as well as a summary of investment terms and program parameters. 

Contact

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We'd love to hear from you! If you have any questions or would like additional information, please contact us directly at kfarrell@diamondcapitalmgmt.com or (262) 691-9144.

 
 

Risk Disclosure

The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. 

The high degree of leverage that is often obtainable in commodity trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains. 

No assurance is given that the performance will be the same for all accounts controlled by the Advisor due to, among other things, account size, the time at which the account was opened or closed, and differing levels of leverage.

In some cases, managed commodity accounts are subject to substantial charges for management and advisory fees. It may be necessary for those accounts that are subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the Commodity Trading Advisor (CTA). 

The regulations of the Commodity Futures Trading Commission (CFTC) require that prospective clients of a CTA receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client's commodity interest trading and that certain risk factors be highlighted. This document is readily accessible at this site. This brief statement cannot disclose all of the risks and other significant aspects of the commodity markets. Therefore, you should proceed directly to the disclosure document above. The CFTC has not passed upon the merits of participating in Diamond Capital Management programs nor on the adequacy or accuracy of the disclosure document.

This brief statement does not cover all of the risks and other significant aspects of the commodity markets. You should therefore carefully study the disclosure document prior to opening an account.