Alternative Investment Awards 2017 7 Most Innovative Hedge Fund Manager 2017 - USA & Best US Option Strategies Fund (5 years): The Third Friday Total Return Fund, L.P. Third Friday Management, LLC is the manager of the Third Friday Total Return Fund, L.P. and manages the fund on behalf of institutional and high net worth investors around the world. We invited Michael Lewitt to share the secrets behind the firm’s success. Company: Third Friday Management, LLC Contact: Michael Lewitt Email: [email protected] Address: 515 N. Flagler Drive, Suite 300, West Palm Beach, FL 33401 Phone: 00 15612391510 Website: The Third Friday Total Return Fund, L.P. utilizes a proprietary rules- based options strategy to generate attractive risk-adjusted returns in all market environments. The fund focuses on preservation of capital and insuring that positions are properly hedged. Michael discusses the fund in more detail and outlines the strategies it employs to offer clients the very highest standards of service and strong returns. “Here at Third Friday Management, we offer the Third Friday Total Re- turn Fund, L.P., a rules-based options hedge fund celebrating its 10th anniversary on May 1, 2017. So far it has produced superior risk-adjust- ed returns and never suffered a negative year, including 2008, when it was slightly positive despite the global recession. It is this ten-year track record without a single negative year and our genuinely hedged and market neutral strategy that truly sets our firm apart from our competi- tors. We have managed this strategy for 10 years before the fund start- ed, and offer clients both our expertise and humility, as we respect the market and never try to outguess it. We follow our rules-based strategy at all times and do not deviate from it regardless of whether it is working at any specific time because we know that over time it will produce the results we expect. “Working to retain this strong performance is our focus and as such we work to ensure that our investors receive the very best returns possible through our risk management approach, which revolves around offering a strategy that sells at-the-money straddles on the S&P 500 index on a 3-month rolling basis and hedging them by purchasing out-of-the- money put and call hedges on those positions. We view the market as a casino and we play the role of the house by collecting the time value embedded in index options. We do not use leverage and keep significant cash balances of at least 30% at all times and make sure our straddles are hedged.” This strong, risk adjusted approach helps the firm to overcome the biggest challenge facing the US hedge fund industry currently; the fact that most hedge funds are not really hedged, but are instead long-bi- ased funds that charge hedge fund fees and fail to provide attractive risk-adjusted returns. Third Friday is an exception to that rule, as the fund charges appropriate fees (1/15) and is hedged and provides con- sistently attractive risk-adjusted returns without leverage and manages risk effectively with strong risk metrics. Alongside the fund, Third Friday Management also publishes The Credit Strategist, a well respected financial newsletter that is read widely in financial and political and academic circles around the world. Michael believes that the publication is central to the firm ensuring that it re- mains ahead of the industry and able to adapt quickly and efficiently to any new trends within the market. “As a long-time newsletter publisher, we provide well-respected, cutting-edge macro research that is widely read and respected and ensures that we are always at the forefront of market developments. We also employ cutting edge artificial intelligence technology with respect to some of our trading strategies that is proprietary and is unavailable elsewhere. Looking to the future, Michael is optimistic that both the firm and the fund can continue to offer clients the very best performance thanks to its dynamic strategy and returns focused approach. “Moving forward, our ongoing focus is to continue to grow the fund through our innovative investment strategy, which is liquid and scalable without any slippage in performance. We are focused on one thing: producing strong risk-adjusted returns for our clients and will continue to do work towards this goal over the coming months and years.” AI170007