PQI is a fully quantitative, long-term asset manager delivering long-only equity strategies.

We combine statistical and economic research to extract alpha and beat the stock market, and our investment hypotheses are rigourously tested before implementation. This means that we work systematically and methodically with large amounts of data and the newest technology. The PQI investment process is transparent and repeatable, and avoids human error and most subjective biases. Our goal is to beat the market long-term by about 5% per year with three-quarters of the risk.

To PQI the entire market cycle is essential, and equity exposure is therefore one of the ground pillars of our investment process. To deliver market-beating returns it is just as necessary to reduce ones equity exposure as the opposite, and PQI utilizes sophisticated models to ensure that our exposure is both optimal and tail-risk minimizing. The PQI exposure model alone generates significantly better returns than the market.

Our neanderthal brain tells us that we have to run and hide when uncertainty is large, but this approach is fundamentally mistaken in the financial markets. To increase diversification and lower risk, PQI occasionally hedges our stock portfolio with alternative asset classes. This makes the strategy easier to stay invested in due to lower drawdowns, in addition to the fact that positive returns are generated in the most volatile periods.

To support this general framework, the strategies' alpha signals are generated by combining different models that exploit repeated inefficiencies in the markets. These are in turn evaluated and traded to generate a broad portfolio. Meticulously following these steps requires strict discipline, and can in reality only be carried out if the investor uses systematic investing.

For more information, contact us.

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