Key Takeaways
- • Granite Alternative Group, led by Chairman Menashe Shemesh and CIO Uriel Geller, has achieved positive returns in all calendar years since the flagship Granite Alphen Capital Fund (GACF) launched in 2013, with a Sharpe ratio exceeding 1.0 and high rankings across multiple performance databases.
- • The Israel-headquartered systematic derivatives manager operates eight distinct strategies across listed derivatives in equity indices, volatility, fixed income, and ETFs in US and European markets, with three strategies positively correlated to equities, three negatively correlated, and two uncorrelated.
- • Shemesh and Geller bring over 20 years of combined options trading and market-making experience, having transitioned from proprietary trading (Shemesh founded Granite Financial Instruments Limited in 2003; Geller joined in 2004 after market-making at Bear Wagner in New York) to systematic asset management.
- • GACF has expanded its strategy suite since inception from a weekly premium collection approach to include sector spreads, VIX futures and options, index collars, equity calls, calendar spreads, and both strategic and tail hedges to optimize returns across multiple market regimes.
- • Granite Alternative Group is at an inflection point, augmenting its team, diversifying strategies further, and expanding distribution channels to scale assets under management and accessibility to a broader institutional investor base.
Summary
Granite Alternative Group, headquartered in Herzeliya, Israel, represents a maturing systematic alternatives manager focused on generating volatility alpha across multiple market regimes through disciplined derivatives trading. The firm, led by Chairman Menashe Shemesh and Chief Investment Officer Uriel Geller, has achieved a significant milestone: the flagship Granite Alphen Capital Fund has delivered positive performance across all calendar years since its 2013 inception, a rare achievement in alternatives management. The fund has realized a Sharpe ratio exceeding 1.0 and maintains high rankings across multiple institutional performance databases, positioning it as an award-winning strategy within its peer group.
The fund's success reflects the founders' deep expertise in derivatives markets. Shemesh established Granite Financial Instruments Limited, an Israeli options proprietary trading operation, in 2003. Geller joined the firm in 2004, bringing market-making experience from Bear Wagner in New York, where he traded US equity options. Between 2003 and 2013, the team developed and rigorously backtested systematic trading models (2009–2012) before accepting external capital and transitioning fully to asset management in 2013. This transition from proprietary trading to systematic fund management allows the founders to leverage two decades of options trading expertise within a regulated institutional framework.
The GACF strategy employs a multi-regime approach that dynamically adjusts between risk-on positioning during stable market conditions and risk-off positioning during elevated volatility periods. The fund now comprises eight distinct derivatives strategies distributed across three correlation profiles: three strategies positively correlated to equities, three negatively correlated, and two uncorrelated. These strategies trade listed derivatives across equity indices, volatility instruments (including VIX futures and options), fixed income products, and ETFs in both US and European markets. Since launching with a weekly premium collection strategy, GACF has systematically added sector spreads, index collars, equity calls, calendar spreads, strategic hedges, and tail hedges to optimize returns and reduce drawdowns across varying market environments.
As of August 2022, Granite Alternative Group is executing an expansion strategy centered on three pillars: team augmentation to support growth, strategic diversification through new strategy additions, and multi-channel distribution expansion to broaden institutional access. This inflection point reflects management's confidence in scaling the business while maintaining the systematic, risk-managed approach that has driven consistent performance since inception.
The fund's success reflects the founders' deep expertise in derivatives markets. Shemesh established Granite Financial Instruments Limited, an Israeli options proprietary trading operation, in 2003. Geller joined the firm in 2004, bringing market-making experience from Bear Wagner in New York, where he traded US equity options. Between 2003 and 2013, the team developed and rigorously backtested systematic trading models (2009–2012) before accepting external capital and transitioning fully to asset management in 2013. This transition from proprietary trading to systematic fund management allows the founders to leverage two decades of options trading expertise within a regulated institutional framework.
The GACF strategy employs a multi-regime approach that dynamically adjusts between risk-on positioning during stable market conditions and risk-off positioning during elevated volatility periods. The fund now comprises eight distinct derivatives strategies distributed across three correlation profiles: three strategies positively correlated to equities, three negatively correlated, and two uncorrelated. These strategies trade listed derivatives across equity indices, volatility instruments (including VIX futures and options), fixed income products, and ETFs in both US and European markets. Since launching with a weekly premium collection strategy, GACF has systematically added sector spreads, index collars, equity calls, calendar spreads, strategic hedges, and tail hedges to optimize returns and reduce drawdowns across varying market environments.
As of August 2022, Granite Alternative Group is executing an expansion strategy centered on three pillars: team augmentation to support growth, strategic diversification through new strategy additions, and multi-channel distribution expansion to broaden institutional access. This inflection point reflects management's confidence in scaling the business while maintaining the systematic, risk-managed approach that has driven consistent performance since inception.
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