Short-Term Strategies: tactical, liquid, transparent
KRAT’s short-term suite is designed for investors who require access to capital with defined risk tolerances and measurable return targets. Our tactical cash management and event-driven offerings combine real-time market signals, settlement-aware trade execution, and governance that enforces exposure limits. We prioritize instruments and counterparties that align with the stated liquidity horizon while seeking incremental return through disciplined, time-limited positions. Each mandate includes explicit entry and exit rules, documented transaction costs, and scenario-based stress reporting so clients can evaluate outcomes under normal and stressed conditions. We aim to provide repeatable implementations that integrate with client operational workflows and custody arrangements.
Strategy composition and rationale
KRAT constructs short-term portfolios by layering three complementary pillars. The first pillar is tactical cash management which uses short-duration instruments and selective alternatives to enhance yield while keeping redemption timelines transparent. The second pillar focuses on event-driven trades that exploit clear, time-limited catalysts such as corporate actions, tender offers, or liquidity windows. These trades are sized conservatively with predetermined exit rules to avoid open-ended exposure. The third pillar is a comprehensive risk-control framework that enforces exposure caps, counterparty concentration limits, and stop-loss conditions calibrated to mandate objectives. The combination ensures that incremental returns are pursued only where liquidity and execution characteristics align with client requirements. Each strategy is stress-tested across market regimes so clients understand potential drawdowns and recovery scenarios. Implementation emphasizes low-latency settlement, operational resilience, and clear documentation so the trading lifecycle meets institutional standards.
Execution, reporting, and governance
Execution quality is central to short-duration returns. KRAT monitors trade-level slippage, benchmarks execution against relevant intraday metrics, and partners with counterparties that demonstrate consistent settlement reliability. Clients receive transparent transaction-level reporting, daily or weekly reconciliations depending on the mandate, and scenario analyses that highlight liquidity pathways under stress. Governance includes pre-trade approvals for larger allocations, documented escalation procedures, and periodic independent reviews of operational controls. Fee disclosure is explicit and includes estimated implementation costs so clients understand net outcomes relative to gross performance. Regular client reviews allow guardrails to be adjusted in response to material market evolution or changing operational needs. Our operations team conducts integration tests during onboarding to validate custody and reporting workflows before live allocation begins.
Onboarding and customization
Onboarding begins with an operational and regulatory review to understand custody, settlement, and reporting constraints. We then align mandate design to required liquidity windows and client tolerance for active exposure. Customizations include specified redemption notice periods, concentration limits, and counterparty exclusions. Before live deployment, test trades validate connectivity and reconciliation flows. Clients receive a governance packet with stress scenarios and an agreed communication cadence so expectations are aligned. Our goal is to deliver repeatable short-term implementations that integrate with client infrastructure while preserving the agility needed to capture time-limited opportunities.