Pangea capital LLC has available the most sophisticated computerized systems to analyze, graph, dissect and determine the best entry and exit points for any investment. It also emphasizes the short selling strategy to take advantage of declines in the markets. Pangea capital LLC primarily uses the US equity and debt market, as well as the use of options, indices, futures and other derivative products, as well as commodities and currency. Uniquely, Pangea Capital also makes direct investments in companies. These investments can be made independently or together to exploit poorly valued assets in capital structures.
Before taking a new position or making a new investment, an intense technical and fundamental analysis is done. Every position has an exit strategy built into it, that way we can ensure profit taking and loss protection at all times, reducing the surprise factor. Any current strategy in the fund also receives a daily monitoring and a weekly evaluation to determine if the parameters and conditions that allowed its investment to continue to be attractive to the fund. Pangea's size and adaptability and flexibility allow it to react quickly and efficiently to market changes.
Target profit exit and stop loss are built into the trade. This guarantees no losses due to gapping risk and profit realization at expected levels. Trades are expressed using the underlying cash, short and long option positions that can be partially financed amongst themselves. Typically, longs are expressed with call spreads, financed by short puts with a stop and/or shorts can be expressed by put spreads, financed with strangles.
The ratio of risk capital to potential profit is 5 times. Maximum loss of 1K against maximum gain of 5K, allows us to enter more strategies simultaneously in different products. Likewise, it gives us the breadth and latitude of being able to be wrong on more occasions and still be able to report a positive return for our investors.