The Quant Portfolios
We offer a range of different Quant Strategy + Equity Universe combinations called „Quant Portfolios,“ which are essential for all quant-based investment products. These Quant Portfolios are often used in blended mode to effectively manage risk, return, and correlation levels.
Modern AI Technology
Cutting-edge generative and predictive models, supplemented by rule-based components, are utilized to create top-tier algorithms to optimize entry and exits properly.
Scalability
Our markets usually include major U.S. stocks, individual stock and index options, and stock index futures.
Risk Management
A key focus of our operations is risk management, aimed at safeguarding our clients against portfolio volatility. We provide investment solutions with a notably low beta (<0.1).
Quantmade Wealthtech Report 2024
The Wealthtech Suite of Quantmade is a comprehensive set of quant models, strategies and portfolios designed to empower asset managers, family offices, high-net-worth individuals (HNWIs), and funds with advanced quant-driven investment capabilities. It leverages Quantmade’s expertise in quantitative analysis, artificial intelligence, data science, and financial modeling to provide state-of-the-art solutions tailored for modern wealth management.
Quant strategies applied to the S&P 100 ® stock universe
We use three different Quant Models called RESIST, COLLECT and CLIMB to manage US single stock portfolios based on the S&P 100 universe
RESIST US 100
DEFENSIVE QUANT
The RESIST portfolio is a very low-beta investment strategy. It trades the S&P 100 stocks long only, achieves an average annual returns of ca. 9% at a beta below 0.1
It is used as a core element in wealth management to gain attractive returns at 4x reduced drawdowns and volatility.
COLLECT US 100
BALANCED QUANT
The COLLECT Quant Strategy is a balanced Quant model. It achieves an average annual return of ca. 15% at a beta value of 0.5. In this Quant Portfolio, COLLECT is trading the top 100 US stocks listed in the S&P 100 (R) index.
COLLECT is used as a core or satelite element in managed accounts, funds or certificates.
CLIMB US 100
OFFENSIVE QUANT
In this Quant Portfolio, CLIMB trades the top 100 US stocks from the S&P 100 (R). CLIMB averages annual returns over 15% and is seen as an aggressive Quant model.
It should serve as a secondary component, used mainly after significant market drops as a contrarian system with higher risk.
Quant strategies applied to the Nasdaq 100® stock universe
We use three different Quant Models called RESIST, COLLECT and CLIMB to manage US single stock portfolios based on the Nasdaq 100 universe
RESIST US Tech 100
DEFENSIVE QUANT
The RESIST US Tech 100 is the low-beta version trading the top 100 US tech stocks listed in the NASDAQ 100 (R) with average annual returns of ca. 10% and beta values down to 0.15%. Like the other three Quant Models, RESIST trades only long (no shorts and derivatives).
COLLECT US Tech 100
BALANCED QUANT
The COLLECT US Tech 100 is a balanced Quant Portfolio that trades the top 100 US Tech Stocks. It generated an average annual return of about 19% with a beta around 0.6. COLLECT US Tech 100 has consistently outperformed the NASDAQ 100 (R) Index in recent years and over a longer time frame.
CLIMB US Tech 100
OFFENSIVE QUANT
The CLIMB US Tech 100 is a strong long-only trading method that focuses on the Top 100 US tech stocks, with annual returns around 19%. It works best as a part-time boost during recovery after market downturns. However, it’s more effective to avoid it during volatile market conditions.
Use Cases and Results
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For Quant Managed Accounts:
Clients have full flexibility to define their own portfolio combinations or can leverage Quantmade’s proprietary Dynamic Optimization (DO) model. This model adjusts asset allocation among the portfolios based on a six-month forward-looking forecast, ensuring an optimal balance of risk and return. -
For Quant Funds and Certificates:
Investment vehicles such as funds or certificates are powered by either static or dynamic combinations of these portfolios. Static setups provide consistency, while dynamic combinations adapt to evolving market trends for superior performance. -
Enhanced Performance:
Blending uncorrelated strategies allows for greater stability and consistent alpha generation across market conditions. -
Risk Diversification:
Combining independent, data-driven portfolios mitigates risks and reduces overall beta, making the portfolio less vulnerable to market volatility. -
Adaptability:
Machine learning signals and real-time risk analytics enable precise timing and adaptability, maximizing returns while minimizing drawdowns.
Live Performance Results
Wealthtech Suite Performance in Blue (vs. Benchmarks)
Design Risk, Return and Correlations
Using our AI-driven stochastic models, we predict price movements with a measurable degree of probability. This approach allows us to maintain positions as long as the likelihood of an upward trend remains favorable, ensuring a strategic advantage. Each position is managed independently with its own model-driven exit strategy.
Unlike traditional investors, we operate as quantitative traders, employing a highly dynamic investment strategy. This enables us to minimize drawdowns by shifting predominantly to cash during market downturns while capitalizing on upward trends. By avoiding constant exposure to individual stocks and strategically moving fully into cash when necessary, we effectively mitigate risk while consistently achieving exceptional returns.
Market Timing at swing-lows with zero lag
As can be seen in the chart of Coca-Cola, the Quant models avoid unintersting enteries with a low degree of upside potential. The Quants are able to differentiate between lower and higher volatility and adapt dynamically to market changes. This supresses drawdowns, buffers risks and increases returns – everything we want.
