ELEMENT CAPITAL MANAGEMENT LLC

ELEMENT CAPITAL MANAGEMENT LLC is a global macro–focused hedge fund manager headquartered in New York, NY. Founded by Jeffrey Talpins, who serves as Chief Investment Officer, the firm is known for running a highly risk-managed, derivatives-intensive macro strategy across interest rates, foreign exchange, equity indices, volatility, and related markets. Client capital is sourced predominantly from institutional allocators such as pensions, sovereign entities, endowments, foundations, and family offices. Element operates as an SEC-registered investment advisor and files with the U.S. Securities and Exchange Commission as an institutional investment manager under CIK #0001535630. Because it exercises investment discretion over accounts holding U.S.-listed securities above the Section 13(f) reporting threshold, it is required to submit Form 13F reports. These filings disclose only the firm’s long U.S.-listed equity and certain equity-like positions at quarter-end. In the context of Element’s broader multi-asset macro strategy, the 13F portfolio represents a narrow slice of its activity, typically including index and sector ETFs, occasional single-name equities, and other listed vehicles used as part of macro and volatility expressions or hedges. The bulk of risk is implemented through futures, options, swaps, and non-U.S. instruments that are not captured in Form 13F. Taken together over time, however, the firm’s 13F submissions create a structured 13F History of its disclosed U.S. equity and ETF sleeve, which can be analyzed for changes in positioning around major macro regimes.

Element Capital’s core strategy is discretionary global macro with intensive use of derivatives and options to achieve asymmetric payoff profiles. The firm seeks to identify mispricings and convex opportunities around macroeconomic shifts—such as changes in central bank policy, inflation regimes, growth expectations, and cross-asset correlations—and to express those views across rates, FX, equities, and volatility markets. Key characteristics of the approach include: - Focus on macro themes: Positioning is organized around high-conviction macro theses (for example, shifts in monetary policy paths, term-premium repricing, or regime changes in inflation and growth) rather than bottom-up security selection. - Heavy use of options and structured trades: Element frequently employs options to construct convex payoff structures, aiming for limited downside and potentially outsized upside around specific macro scenarios. This derivatives footprint, central to the strategy, does not appear in Form 13F. - Dynamic risk management: The firm is known for actively managing gross and net exposures and for adjusting positions as probabilities and payoffs for macro outcomes evolve, which can translate into meaningful turnover in listed instruments used for hedging or expression. Within the 13F universe, this philosophy tends to manifest as: - Positions in broad equity ETFs (such as index, sector, or factor funds) that reflect directional or relative-value views on equities versus other asset classes or between regions and sectors. - Occasional use of Treasury or rate-sensitive ETFs where equity-linked vehicles are employed as part of cross-asset trades. - Limited single-name equity positions, typically when idiosyncratic exposures complement a broader macro theme. Because the listed-equity sleeve is implementation- and hedge-driven, its sector mix and holdings can shift materially around large macro events. For allocators, a detailed review of Element’s 13F Portfolio Composition across quarters—ETF usage, concentration in core vehicles, and directional tilt in equity risk—provides clues as to how macro themes have been implemented on the visible part of the book. Feeding this holdings history into a Portfolio Simulator or Backtesting Service allows users to build a synthetic Historical Track Record for the long U.S. equity and ETF sleeve alone, recognizing that this reconstructed path is only a partial representation of the firm’s overall macro positioning.

Element Capital Management is a highly specialized global macro hedge fund whose true investment footprint spans derivatives and multiple asset classes. Its 13F filings only expose the long U.S.-listed equity and ETF sleeve, which is best viewed as a tactical implementation and hedging toolkit linked to broader macro themes rather than a standalone equity strategy. Across its 13F History, analysts can observe: - How reliance on particular ETFs or index exposures has waxed and waned around major macro events. - The extent to which the long sleeve has at times embraced or reduced equity beta, as inferred from composition shifts. - The concentration of risk in a small number of macro-linked instruments versus a diversified equity roster. Embedding these data in a 13F-aware analytics framework enables reconstruction of the observable capital trajectory of the long-equity sleeve and quantitative assessment of its risk-adjusted characteristics. The combination of detailed 13F Portfolio Composition, downside metrics such as Max Drawdown Depth, and efficiency indicators like Sharpe Ratio provides a disciplined, data-driven view of how the disclosed U.S. equity positions have behaved, even though they represent only one leg of much more complex macro structures. Because of the central role of derivatives, shorting, and non-U.S. exposures in Element’s strategy, any 13F-based Historical Track Record should be treated strictly as a model of the gross long-equity component, not as a proxy for investor experience in the flagship funds. A central diagnostic question for further analysis is how a macro-oriented ETF and index-heavy long sleeve of this type would respond under a regime of persistently higher real rates, structurally elevated volatility, and more frequent policy surprises—and how Element’s off-13F hedging toolkit might reshape that behavior at the total-portfolio level.

The risk characteristics of ELEMENT CAPITAL MANAGEMENT LLC cannot be fully captured by Form 13F data, given the firm’s heavy use of derivatives, non-U.S. markets, and short positions. Nevertheless, the disclosed long U.S. equity and ETF sleeve exhibits discernible patterns that can be analyzed in isolation. Key risk dimensions for the 13F-visible component include: - Equity market and factor exposure: Positions in index and sector ETFs translate into varying levels of equity beta and factor tilts (growth vs. value, cyclicals vs. defensives). Depending on the macro thesis, the long sleeve may at times be net long equities, at other times more defensive or partially offset by unobserved shorts and options. - Concentration and instrument risk: The 13F portfolio often contains a limited number of large ETF positions rather than a broad mix of single-name stocks. This structure focuses risk in a few macro-linked instruments; shifts in broad markets or sectors can therefore have an outsized impact on the long sleeve’s path. - Regime sensitivity: Because Element’s exposures are designed around macro regimes, the long equity sleeve can show pronounced performance swings around policy surprises, volatility spikes, and risk-on/risk-off transitions. The visible book may move sharply when large equity index or sector views are in play, even if the total portfolio is hedged through unreported derivatives. From a holdings-based analytics perspective, reconstructing the firm’s quarter-by-quarter 13F portfolios allows estimation of path-dependent statistics for the long-equity subset: overall variability, downside behavior, and efficiency relative to broad benchmarks. Performance Backtests Online built on filings under CIK #0001535630 can be used to compute measures such as Max Drawdown Depth and indicative Sharpe Ratio for the reconstructed sleeve. These analytics must be interpreted carefully: they describe what would have happened to a portfolio holding only the reported long U.S. equities and ETFs, without shorts, options, or non-U.S. assets that Element actually uses to manage risk. As a result, they generally overstate the net equity risk actually borne by investors, but they do highlight how the visible part of the book has behaved across different macro and equity-market environments.