Our investment strategy
Portfolio management based on quantitative analysis and risk management
At QuantK, our portfolio management approach is based on in-depth quantitative analysis to select the best opportunities and manage risk. We utilize quantitative analysis tools to identify high-return opportunities while minimizing risk.
Our portfolio management process begins with identifying opportunities. We use quantitative analysis tools to identify trades that meet rigorous criteria to ensure the portfolio is well diversified and minimizes risk. Financial time series are noisy at all frequencies and are virtually impossible to predict in the medium and the long term. Nevertheless, they show recurring behaviors which can be statistically anticipated, upwards or downwards, over periods varying from a few minutes to a few days.
It is important to note that our portfolio management approach allows us to take both long and short positions. We are not limited to a long-only investment strategy, which means we can also take positions in assets whose prices are declining.
Our portfolio management approach is focused on very short-term trading, with an average holding period of less than a day for approximately 75% of our positions. This means we are able to make quick and responsive trading decisions to capitalize on short-term market opportunities.
Our short-term trading approach allows us to take advantage of temporary market inefficiencies to generate high returns while minimizing risk. We use sophisticated trading algorithms to identify price patterns and market inefficiencies, and to make rapid trading decisions.
Our approach is built on three fundamental pillars: Automation, Optimization, and Adaptation.
Automation
QuantK develops algorithmic strategies for financial markets, employing automated execution to enhance speed, accuracy, and efficiency without human intervention, ensuring optimal performance across leading derivatives markets.
Once we have identified investment opportunities, we construct a balanced portfolio using optimal asset allocation to maximize returns while minimizing risks. We ensure that the portfolio is well diversified across different asset classes.
Optimization
Strategies are created from robust and asymmetric mathematical models, trained on proprietary sampling. Strategies that pass non-parametric multiple comparison statistical tests are grouped into portfolios selected according to their position on an efficiency frontier.
Risk management is a crucial element of our portfolio management approach. We use risk analysis tools to continuously monitor portfolio performance and adjust asset allocations based on market changes.
Adaptation
Continuous portfolio adjustments, incorporating exponentially weighted metrics, ensure adaptability to market dynamics, maintaining optimal positioning in response to changing market conditions.
The success of QuantK, and consequently the compensation for entrusted funds, relies on the confidentiality of these strategies.
