A medium-horizon, market-neutral equity strategy designed to generate alpha by conditioning directional signals on structurally predicted firm-level volatility.

The strategy operates on a broad universe of U.S. equities, beginning with sector-level business model analysis to identify persistent sources of risk such as operating leverage, cost rigidity, financial leverage, and exposure to macro or commodity shocks. These structural characteristics are translated into quantitative risk indicators and aggregated into a forward-looking volatility score, capturing cross-sectional differences in business-model fragility.

Predicted volatility is used as a state variable, not a traded asset. Directional signals—including earnings surprises, sentiment measures, and demand indicators—are scaled according to each firm's forecasted volatility, allocating risk toward names where information shocks are expected to transmit most strongly into price movement.

Portfolio construction enforces dollar and sector neutrality, with volatility-scaled position sizing and strict exposure controls. Risk management and exits are governed by a multi-trigger framework combining:

• • Volatility convergence criteria, exiting positions as realized volatility compresses toward forecasted levels
• • Signal decay thresholds to prevent overstaying positions after informational edge dissipates
• • Time-based exits aligned with fundamental information diffusion
• • Hard risk stops used solely as tail-risk controls

By separating volatility forecasting from return generation, the strategy systematically concentrates capital where signals are most impactful while avoiding overexposure to structurally stable firms, resulting in a robust, interpretable long/short framework adaptable across market regimes.