Item 04Advisory business & quantitative mandate. Systematic factor equity for accredited investors. A market-equilibrium baseline combined with a factor-derived expected-return vector (μ̂), stabilized by Bayesian shrinkage. Mu Hat Capital Management specializes in systematic, factor-based equity strategies; it manages partnership capital through a multi-factor framework that evaluates the U.S. equity universe above $2B market cap across cross-sectional style and macroeconomic dimensions.
Item 08Methods, strategies & risk of loss. Mitigating data-snooping bias and the “Factor Zoo” (Cochrane, 2011): |t| > 3.0 with multiple-testing corrections (Harvey, Liu, and Zhu, 2016), LASSO and Ridge penalization, Ledoit–Wolf covariance shrinkage (Ledoit and Wolf, 2004). Investing in securities involves a significant risk of loss; no statistical model can fully insulate a portfolio from correlation-regime shifts, systemic drawdowns, or liquidity dislocations.
Item 11Code of ethics & personal trading. A strict fiduciary mandate and a Code of Ethics. No principal trading; no cross-agency transactions. Supervised persons may invest in the same systematic portfolios managed for the Partnership, aligning interest. Personal securities transactions are pre-cleared and monitored by the Chief Compliance Officer.
