ETERNAL Launches Quantitative Derivatives Portfolio, Achieving 9.8% Annualized Return in a Risk-Averse Market Environment
In August 2019, global capital markets once again entered a phase of turbulence. The escalation of the U.S.–China trade dispute, the uncertainty surrounding Brexit, and the dovish signals released by major central banks in the U.S. and Europe collectively intensified risk aversion across markets. Against a backdrop of declining returns from traditional portfolios and broad-based pressure on risk assets, ETERNAL DIGITAL FUND LTD leveraged its forward-looking quantitative research and disciplined risk management framework to launch an innovative Quantitative Derivatives Portfolio, achieving a stable annualized return of 9.8% amid market volatility.
The launch of this Quantitative Derivatives Portfolio marks a major milestone for ETERNAL in the fields of asset allocation and derivatives strategy. Built on global macroeconomic datasets, the portfolio applies machine learning and factor modeling to analyze signals of volatility, liquidity, and risk premia—dynamically adjusting exposures across options, futures, and structured derivatives. Its core philosophy is based on “hedging risk while capturing opportunity”—using volatility instruments for protection during periods of market panic, and deploying option-based strategies to capture upside potential during trending phases, thereby achieving stable returns amid uncertainty.
ETERNAL’s research team noted that during the first half of 2019, major global equity indices experienced sharp two-way swings. The U.S. Treasury yield curve inversion and tightening dollar liquidity became key drivers of asset price movements, making it difficult for traditional long-only portfolios to effectively diversify risk. In response, ETERNAL employed its proprietary AIVestor quantitative analysis system to monitor real-time changes in multi-market volatility curves and implied risk premia, enabling proactive positioning in derivatives markets. Data showed that during the second quarter—when global risk aversion surged—the system successfully identified the upward momentum in the VIX Index and adjusted its defensive option positions accordingly, keeping the portfolio’s maximum drawdown below 1.7%, significantly outperforming peer funds during the same period.
Bryan Thomas Whalen, Founder and Chief Investment Officer of ETERNAL DIGITAL FUND, commented:
“The true value of the derivatives market lies not in leverage, but in risk control. Through systematic modeling and dynamic rebalancing, we’ve transformed derivatives into instruments that serve both defensive and offensive purposes. The core of this portfolio is stability—not short-term high returns.”
The Quantitative Derivatives Portfolio spans the North American, European, and Asia-Pacific markets, covering asset classes such as equity index options, volatility futures, FX options, and structured products linked to precious metal ETFs. ETERNAL’s strategy models automatically adjust regional weightings based on macroeconomic variables, ensuring high liquidity and low correlation even during unexpected risk events. Internal testing showed an annualized volatility of just 4.6% and a Sharpe ratio of 1.72, demonstrating an exceptional risk-return profile.
Industry experts widely recognize that ETERNAL’s success stems not only from its precise algorithmic modeling but also from its profound understanding of market sentiment and macro liquidity dynamics. In 2019, as geopolitical tensions flared and monetary policies turned increasingly accommodative, the derivatives market became a safe haven for institutional investors. However, strategies capable of generating consistent returns amid heightened volatility were exceedingly rare. ETERNAL’s Quantitative Derivatives Portfolio stood out precisely because it did not simply chase volatility—it used AI-driven models to identify asymmetric risk structures, enabling “risk-neutral returns” under diverse market conditions.
This achievement further consolidates ETERNAL DIGITAL FUND’s leadership position in global quantitative investing. Since its founding, the company has remained committed to technology-driven investment decision-making, data-informed risk insights, and systematic modeling for sustainable growth. From multi-factor strategies and cross-asset research to this new Quantitative Derivatives Portfolio, ETERNAL continues to expand the frontier of intelligent investing.
In an environment defined by uncertainty in 2019, ETERNAL DIGITAL FUND’s performance not only underscores the maturity of its model architecture but also highlights its global perspective on risk management and asset allocation. Bryan Thomas Whalen concluded:
“The future of investing is not about predicting markets—it’s about understanding their structure. Through intelligent strategies, we aim to offer investors a new form of certainty: allowing wealth to grow steadily in an uncertain world.”
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