Garch Capital LLC Information

Garch Capital LLC was set up in 2012 as a Registered Investment Adviser in the Greater Boston area. We postulate that majority of participants use backward looking parameters, such as Beta, Equity Risk Premium, Historical multiples to estimate fair values of equities and in some cases forward multiples are used with long-horizon growth expectations - often resulting in valuations that are inaccurate or aggressive. There is significant Alpha to be harnessed in a systematic way by using a valuation method distinctly different from the norm. At Garch Capital, we use forward looking parameters and near term growth expectations to estimate fair values that are relative. Garch takes positions in individual securities whose discount to fair-value or premium to fair value is expected to reduce over time. Garch Fair-Values(Equilibrium Fair Values) are derived from an equilibrium framework that estimates the fair-value of each equity relative to over 1800 equities in its universe. The strategies offered by Garch are all based on the fair-value model. The Green Book, a Relative Return product, is a Long Only book designed to offer attractive Alpha at sub-1 Beta to S &P 500. In the Absolute Return category, we offer Blue and Black Books. The Blue Book uses information on overvalue securities to construct hedges with Short positions in Sector ETFs. Black Book is a traditional Log/Short equity product. These two Books are designed to produce Alpha with significantly lower volatility and near market neutral level of Beta. These Books have been extensively tested with results from January 1, 2000 to June30, 2016. These results are available for review and discussion with institutions, hedge funds and family offices interested in these strategies.