Identify what
could change.
Corporate actions, restructurings, regulatory decisions, and company-specific developments.
CATALYST+ / HEDGE FUND STRATEGY
From catalyst to defined exit.
Catalyst+ is Johnson Randall’s equity and options hedge fund strategy for eligible investors. We research company-specific events and fundamentals, then translate that analysis into deliberate positions and ongoing portfolio oversight.
Explore the process Our approach to risk ↘ONE CONNECTED FRAMEWORKJ | R
01
The eventWhat changes?
02The businessWhat is it worth?
03The positionWhat exposure do we accept?
04Review & exitWhen should exposure change or end?
RESEARCH → STRUCTURE → REASSESS
RESEARCH
Events + fundamentalsCompany-specific developments are evaluated alongside financial condition, valuation, and market expectations.
IMPLEMENTATION
Equities + optionsPosition construction connects the investment thesis with exposure, potential outcomes, and ongoing risk assessment.
INITIAL TRADE HORIZON
Typically 2–6 weeksPosition holding periods can vary. This is not a fund redemption schedule or a commitment to investor liquidity.
01 — FIND THE OPPORTUNITY
The event matters.
So does the business.
We look for identifiable developments that may change a company’s outlook or the market’s assessment of its value.
Fundamental analysis and a securities law perspective bring context to the catalyst: financial condition, valuation, corporate disclosures, and the consequences if the thesis is wrong.
Identify what
Examine what is
already priced in.
Connect the event with the business, its financial position, and market expectations.
Evaluate the
alternative outcomes.
Consider probability, timing, potential impact, and downside if the event disappoints.
02 — CONNECT RESEARCH TO EXECUTION
A repeatable process.
A considered position.
The catalyst informs the opportunity. Position construction determines the exposure, obligations, and decisions that follow.
- 01
Identify
Define the event and the investment thesis.
- 02
Evaluate
Assess fundamentals, timing, and potential outcomes.
- 03
Structure
Weigh option premium against exposure and potential loss.
- 04
Monitor
Review pricing, the catalyst, collateral, and protection.
- 05
Reassess
Adjust or exit as the thesis and risk change.
03 — UNDERSTAND THE POSITION
One thesis.
Changing exposures.
An options position can change over its life. The initial structure, an adjustment, and stock ownership require different risk assessments.
POSITION STRUCTURE
Sell a putPremium received / obligation accepted
Buy a protective putProtection while the spread remains intact
Two legs. One combined exposure.
DEFINED SPREAD / BOTH LEGS HELDPremium with
Premium with
a protective structure.
A put credit spread pairs a sold put with a purchased put at a lower strike. Premium is received at entry, alongside an obligation under the sold option.
The paired structure bounds the contractual payoff at expiration while both legs remain intact. Assignment, execution, and liquidity still require attention.
WHAT MATTERS
Combined exposure, potential loss, expiration, and available liquidity.
POSITION STRUCTURE
Reassess the protective legAdjustment changes the original structure
Evaluate the remaining obligationFunding, assignment, and stock exposure
A change in structure is a change in risk.
TRANSITION / EXPOSURE REASSESSEDProtection changes.
Protection changes.
The analysis changes.
In some circumstances, a profitable protective put may be monetized. The remaining short put no longer has the original spread’s protection.
The position must then be evaluated for its funding needs, potential assignment, and the larger exposure that stock ownership could create.
WHAT MATTERS
Remaining downside, cash requirements, and the ability to manage simultaneous assignments.
POSITION STRUCTURE
Shares acquired through assignmentEquity ownership / company and market risk
Evaluate calls or a collarIncome, protection, and upside trade-offs
Stock exposure is assessed on its own terms.
EQUITY OWNERSHIP / CONTINUED REVIEWFrom option obligation
From option obligation
to stock ownership.
Assignment can turn the short put into a share position. Covered calls or collars may be used as part of subsequent management.
A covered call limits upside and does not eliminate stock downside. A collar’s protection depends on its strikes, term, and continued implementation.
WHAT MATTERS
Equity downside, liquidity, concentration, and the terms of any remaining protection.
A position may be closed or expire before assignment. These stages describe possible position states, not a required sequence or a promise of outcomes.
04 — RISK MANAGEMENT
Evaluate the risk.
Reassess the exposure.
Risk management connects the investment thesis, position construction, and ongoing portfolio oversight. Short duration and protective options do not remove the need to understand potential losses or how exposures may change over time.
The key question: what could the portfolio become if several trades move against us at once?
Understand the position.
Evaluate fundamentals, catalyst timing, and the consequences if the thesis is wrong. Weigh option premium against the combined exposure, potential losses, collateral requirements, and obligations created by the trade.
Consider risks together.
Look beyond sector labels to shared sensitivity to rates, growth, commodities, and risk appetite. Consider funding and liquidity if multiple short puts lead to share ownership, and risk clustered around catalysts, expirations, and major market events.
Reassess the protection.
An adjustment changes the original structure. If a protective put is removed, the remaining short put no longer has the original spread’s protection. Assignment can create stock exposure that requires its own assessment of downside, concentration, liquidity, and funding.
Connect review to action.
Review pricing, the catalyst, collateral, and remaining protection. Consider maintaining, adjusting, reducing, or exiting as the thesis, pricing, portfolio risk, or liquidity changes. An adjustment is not necessarily an exit: remaining obligations and exposure still require attention.
Premium is a cash flow. It is not a guarantee of profit or protection against loss. Covered calls limit upside without eliminating stock downside; a collar’s protection depends on its terms and continued implementation.
Risk management cannot eliminate losses, including the possible loss of all invested capital. Market conditions, assignment, and execution constraints may prevent an intended adjustment or exit at the desired time or price. This overview is not a complete description of the strategy or its risks.
05 — QUESTIONS THAT MATTER
A clearer view
of the strategy.
How should option premium be understood?
Options may generate premium at entry. That cash flow must be considered alongside the position’s obligations, costs, and potential losses. Premium received is not the same as investment profit.
Does protection eliminate the risk of loss?
No. Protection depends on the instruments held, their terms, and how they are managed. Removing a protective leg changes the exposure. Investing in the fund involves substantial risk, including possible loss of all invested capital.
Is every position held for two to six weeks?
No. Two to six weeks describes the typical initial trade horizon discussed for the strategy. Adjustments, an exit decision, or stock ownership following assignment may change the holding period.
How can I review the full strategy?
Contact our team to begin the diligence process. Eligible prospective investors may receive confidential fund materials, including the offering documents and a complete discussion of risks.
Investor inquiries ↗TAKE THE NEXT STEP
Explore the strategy.
Ask the questions.
Discuss the Catalyst+ investment process and ask questions about its risks.
Contact the team This overview is not a complete description of the strategy or its risks. Any investment offer is made only through the fund’s confidential offering documents.