Small Cap US Equities represent one of the most compelling asset classes available to investors. The combination of a large universe with low analyst coverage and many disparate sources of information makes it a perfect opportunity set for a systematic approach.
By taking a quantitative approach to fundamental investing, we seek to build a diversified portfolio of small cap companies that offer the greatest opportunity if alpha within a risk-balanced framework. We then hedge this portfolio with a daily-adjusted tactical futures system that’s designed to dynamically identify and respond to deteriorating macro environments.
The result is quality exposure to US Small Cap Equities with protection when you need it.
The RQSI GAA Systematic Global Macro Program (“GAA”) is a purely systematic, global futures strategy designed to provide attractive risk-adjusted returns with little or no correlation to traditional asset classes. RQSI’s GAA program is easy to understand. At its core, this program seeks to take advantage of multiple levels of diversification by leveraging a deep understanding how markets and sectors interrelate and the optimal frequencies of basic market anomalies. We focus on diversification across:
This strategy represents a fusion of our expertise and experience into a single investment product that combines a strong econometric based asset allocation process to proven quantitative and technical inputs.
RQSI’s Custom Solutions represent the building blocks of our GAA portfolio. By decomposing GAA into its individual return drivers, we make available to clients the ability to create a custom portfolio solution tailored to their specific risk profile.
Systematic yield utilizes multiple Yield sources for capturing non-correlated implicit and explicit yield across asset classes. Allocations to the various yield sources are managed to ensure no single source contributes disproportionally to the total portfolio risk, then a macro hedge is overlaid to protect against extended drawdowns. The result is a diversified source of yield-like income that is less susceptible to (rising-rate) market environments and business cycle fluctuations.
Risk is managed both within the portfolio (to ensure diversification across sources of return) as well as at the macro-level to protect against broad market selloffs.