Value Equity
Investment strategy with higher risk and return profile. Suitable for investors with higher risk tolerance. The strategy seeks to outperform the broad US stock market (benchmark is ETF fund SPY
).
The SPDR S&P 500 ETF (SPY) is an exchange-traded fund (ETF) that tracks the Standard & Poor's 500 (S&P 500) index.
Annual average yield
%
10.7%
Estimated yield
(USD)
13.3%
Optimal investment period
from years
5
The strategy uses machine learning
Investor Memorandum
Base currency
USD
Optimal investment period
from 5 years
Minimum entry threshold
300 000$
Estimated yield
13.3%
Management fee
1-1.5%
Success fee
15%
Investor's profile
The Quantum Capital Fixed Income Plus strategy is suitable for investors, who:
Want to own shares in prominent companies
Seek higher capital gains
Have a higher risk tolerance
Want to hold higher liquidity assets
Comparison of yields
Value Equity strategy (82.69%) and benchmark fund SPY (67.94%). 2021 performance: +21%
The effectiveness of the strategy
February 2020 - December 2021
Accumulated yield for the period
82.69%
Portfolio volatility
25.21%
Strategy Sharpe Ratio
3.02
HYG Fund Sharpe Ratio
3.87
Share of months with positive returns
65%
Maximum portfolio drawdown
-15.9%
Strategy tools
Given the strategy's goal of outperforming the U.S. equity market at comparative risk, the portfolio instruments should be broadly similar in type. The SPY index fund consists entirely of stocks of major U.S. companies.
70%
Shares of U.S. companies
More
Shares of U.S. companies
This is the main tool of the strategy. The SPY fund consists of these stocks, but only for the largest companies. To outperform the market, QC is also able to buy shares of smaller companies.
30%
Shares of companies from other countries
More
Shares of companies from other countries
This is a secondary tool of strategy. QC looks for investment opportunities everywhere and often international companies are more affordable than U.S. companies.
Additional instruments of the strategy - other instruments: bonds, notes, preferred stocks and currencies. These types of assets are allowed to be purchased in cases where we see a significant earning opportunity or intend to protect the portfolio from any expected risks. It is allowed to use derivative instruments in order to hedge risks.
ETF
ETN
ETC
All of the above instruments are allowed to be purchased both directly and through ETFs, ETNs, ETCs and structured products
Target portfolio structure
Deviations from the target structure are acceptable
Approach to investing
The basic idea is business ownership, not speculation. This strategy is effective in the medium to long term investment horizon.
Stage 1
Selection of companies through rigid filters
- Portfolio managers have an understanding and, more importantly, an interest in the industry in which the company operates
- The company has a clear and sustainable competitive advantage
- The company has been growing sales, profits and cash flow for several years
- Very competent and honest top management with a history of successful management
Only a small number of organizations pass all of the above filters.
Stage 2
Analysis and evaluation of selected companies
As we review the business, we push back
- From financial statements, company presentations, and analytics from major banks
- From independent sources: QC analysts read company product reviews, employee reviews on Glassdoor, Google and Twitter trends, reports and competitor presentations
QC portfolio managers need a deep and comprehensive understanding of the company's operations to acquire a stake in the business.
Stage 3
Formation of the portfolio
A high level of confidence in the analysis allows you to invest a significant proportion of assets in a single company - up to 15% of assets under management. Thorough analysis allows increasing portfolio concentration to achieve attractive returns. If there are unallocated funds, QC purchases ETF units and trusts the market to diversify.
Risk management
The main risks for the strategy
Market and concentration risk. We also consider currency and liquidity risk.
Market risk
The possibility of a decline in the market prices of instruments in the portfolio. This risk arises as a reflection of other risks - financial, operational, currency, political and other. QC intends to reduce the effect of this risk by buying companies at a discount to their valuation.
Concentration risk
Vulnerability of a portfolio to the performance of a single company or sector. If there is only one instrument in an investor's portfolio, he or she is completely dependent on the returns of that security. Multiple instruments, on the other hand, compensate for each other's movements and reduce concentration risk.
Currency risk
The probability that changes in exchange rates will lead to losses. However, it arises only when investing in non-dollar instruments. The Quantum Capital intends to purchase such securities only after careful macroeconomic analysis in order to minimize the currency risk.
Liquidity risk
The degree of difficulty in selling the instruments. The higher this risk, the more difficult it is to sell securities in a short period of time and without a significant decline in price. This risk is controlled by the selection of stocks with active market trading.
How the premium service works
Step 1
Talk about your goals
Fill out an 8-question questionnaire about your attitude toward risk, goals, and investment experience
Fill in the form
Step 2
Define the risk profile
Based on the results of the questionnaire, the manager will determine your risk appetite and type of behavior in financial markets
Step 3
Form a portfolio
We will choose the best strategy based on your goals
Determine your risk profile in 2 minutes
Answer 8 questions
Investor risk profile
Conservative
An investor with this risk profile is not prepared for portfolio drawdowns. Your main focus:
to preserve and multiply capital without significant risk. The main asset class for investment in this case - U.S. government securities. The Quantum Capital Treasury strategy will suit a conservative investor for his goals.
to preserve and multiply capital without significant risk. The main asset class for investment in this case - U.S. government securities. The Quantum Capital Treasury strategy will suit a conservative investor for his goals.
This questionnaire is not a questionnaire for accurately determining the investment profile of a client that meets all the requirements and rules for carrying out securities management activities. To understand your risk appetite, send the questionnaire to the manager for a detailed consultation. He will determine your type of behavior in the financial markets and select the appropriate investment strategy.
Send the questionnaire to the manager
QC Treasury
Estimate yield
3-5%
Optimal investment period
6+ months
Investor risk profile
Moderate
An investor with such a risk profile is not prepared for portfolio drawdowns of more than 5-10%. Your main focus: to preserve capital and protect it from inflation. The main asset class for investment in this case are bonds and money market funds. The Quantum Capital Fixed Income Plus strategy will assist the conservative investor in his goals.
This questionnaire is not a questionnaire for accurately determining the investment profile of a client that meets all the requirements and rules for carrying out securities management activities. To understand your risk appetite, send the questionnaire to the manager for a detailed consultation. He will determine your type of behavior in the financial markets and select the appropriate investment strategy.
Send the questionnaire to the manager
Fixed Income Plus
Yield for 2021
6,82%
Estimate yield
8,1%
Optimal investment period
from 2 years
Investor risk profile
Moderate-aggressive
An investor with this risk profile is prepared to withstand serious market declines during a crisis (up to 50%). Your main focus: to maximize capital appreciation. As a rule, such an investor holds the majority of his portfolio in stocks. For this investor, the Quantum Capital Value Equity strategy, where 70% of the portfolio is stocks of U.S. companies, is suitable.
This questionnaire is not a questionnaire for accurately determining the investment profile of a client that meets all the requirements and rules for carrying out securities management activities. To understand your risk appetite, send the questionnaire to the manager for a detailed consultation. He will determine your type of behavior in the financial markets and select the appropriate investment strategy.
Send the questionnaire to the manager
Value Equity
Yield for 2021
22,0%
Estimate yield
13,3%
Optimal investment period
from 2 years
