Clarke Capital Management
Management Information
Michael J. Clarke, President of Clarke Capital Management Inc., began his financial career in 1983 as an independent contractor, trading equities and options for Rice, Naegele & Associates in Chicago. In 1985 he was hired by Shatkin Investment Corp. to trade the firm’s account on the Chicago Board Options Exchange, where the company was a clearing member.
During the stock market “crashes” of 1987 and 1989 many firms and option traders experienced severe losses and were financially hurt. Although Mr. Clarke made profits during both crashes, and indeed was profitable every year he traded options, the subsequent downsizing of equity options arbitrage and lack of order flow from the public caused Clarke to begin to explore other trading opportunities. It wasn’t very long before he became interested in futures trading.
After extensive study and computer development, Michael Clarke started trading his first system in 1990. Though there was excellent performance, trading was curtailed after nine months because Clarke was not satisfied with the volatility and risk parameters he was using. Over the next few years he developed new and better strategies. Eventually the systems and techniques currently in use began to take form.
In 1993, Michael Clarke formed Clarke Capital Management, Inc., and registered with the Commodity Futures Trading Commission as a Commodity Trading Advisor (“CTA”). As of 2006, Clarke Capital has seven different trading programs.
Program Descriptions
The Global Basic Program ($200,000 Minimum) trades approximately 18 domestic and international commodity interests, utilizing five intermediate time-frame models. These five models have been selected for their ability as a group to provide a high return for the amount of exposure or time that a position is held. It should be noted that there will be times when there is significant correlation between markets within a market sector or between market sectors, possibly in an adverse direction to positions held in the client’s account. Clients of the Global Basic program should be aware that this factor alone, although there are others, will lead to periods of extreme volatility and possibly very large drawdowns in an investor's equity. The Global Basic program will, at times, have a significantly higher margin to equity ratio than the Worldwide Program, and at other times will trade very lightly due to the selectivity of its models. During periods of higher margin to equity ratios, CCM attempts to counterbalance the inherent increased volatility one would expect with this higher ratio by using five models with relatively short focus. These models have stringent entry techniques when evaluating initial risk and quick acting initial exit techniques. By industry standards these models would probably be classified as intermediate rather than short-term.
The Global Magnum Program ($200,000 Minimum) trades approximately 19 domestic and international commodity interests utilizing variations of the five models used in the Global Basic Program plus six additional models with similar time frame, risk control and profit-taking characteristics to the Global Basic models. These eleven models have been selected for their ability as a group to provide a high return for the amount of exposure or time that a position is held. It should be noted that there will be times when there is significant correlation between markets within a market sector or between market sectors, possibly in an adverse direction to positions held in the client’s account. Clients of the Global Magnum program should be aware that this factor alone, although there are others, will lead to periods of extreme volatility and possibly very large drawdowns in an investor's equity. The Global Magnum program will, at times, have a significantly higher margin to equity ratio than the Worldwide Program, and at other times will trade very lightly due to the selectivity of its models. During period of higher margin to equity ratios, CCM attempts to counterbalance the inherent increased volatility one would expect with this higher ratio by using eleven models with relatively short focus. These models have stringent entry techniques when evaluating initial risk and quick acting initial exit techniques. By industry standards these models would probably be classified as intermediate rather than short-term.
The Orion Program ($400,000 Minimum) currently trades 27 domestic & international commodity interests, 13 of which are either long or short interest rate contracts reflecting interest rates in the US, EMU, the UK and Australia. Also followed are several US and Non-U.S. currencies, grains, softs, meats, metals and fuels. The program uses seven models. Five of the models are intermediate time-frame focus with similar characteristics to those in the Global Basic and Global Magnum programs. The other two models are long-term models and are variations of two of the more successful models used elsewhere by CCM. It should be noted that there will be times when there is significant correlation between markets within a market sector or between market sectors, possibly in an adverse direction to positions held in the client’s account. Clients of the Orion program should be aware that this factor alone, although there are others, will lead to periods of extreme volatility and possibly very large drawdowns in an investor's equity.
The Millennium Program ($1,000,000 Minimum) currently trades approximately 48 domestic and international commodity interests. 17 of these are either long or short interest rate contracts reflecting interest rates in Europe, the US, Canada, Japan and Australia. The balance of the commodity interests followed are currencies, grains, softs, metals, meats and fuels both foreign and domestic. The number of models used in this program is 27. Unlike many of the other programs of CCM, the Millennium Program uses several very long term models among the 27 in its portfolio. These very long term models generally produce larger profits per trade, but lower profits per day than shorter models. When used in a portfolio with shorter time frame models, as is the case here, the can produce smoother overall equity curves even though these models generally give much more room to a position before exiting. It should be noted that there will be times when there is significant correlation between markets within a market sector or between market sectors, possibly in an adverse direction to positions held in the client’s account. Clients of the Millennium program should be aware that this factor alone, although there are others, will lead to periods of extreme volatility and possibly very large drawdowns in an investor's equity.
Required Documents ( in PDF Format )
Clarke Capital Authorization
Clarke Capital Account Forms
Clarke Capital Disclosure
Clarke Capital Supplemental Agreement
The descriptions above are primarily from the manager’s disclosure document.
THE RISK OF LOSS IN TRADING FUTURES, OPTIONS AND FOREX CAN BE SUBSTANTIAL. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. PLEASE READ THE CTA'S RISK DISCLOSURE DOCUMENT CAREFULLY BEFORE INVESTING MONEY.
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