Our Approach

Risk management is built into every step of our portfolio management process beginning with a definition of the return & risk objectives of our investment strategies.

Our focus is using a quantitative and systematic investment approach. We rely on data to continuously monitor the performance characteristics of the multiple asset models that make up our portfolios. There is no attempt to predict market trends, risks, or returns. Instead, we use our quantitative models for a data-driven process to remove human error in managing and monitoring risk.

The Quoin Investment Quotient (IQ)

Risk Assessment

We use concepts in behavioural finance to gain an in depth understanding of your risk tolerance and generate a personalized “Risk Quotient”.

Risk Analytics

Using our proprietary risk analysis dashboard, we optimize our model allocations based on your “Risk Quotient”.

Return Analysis

Once we have your risk optimized portfolio, we analyze and stress test the probabilities of achieving your financial goals.

Stock Universe

A trading universe provides a set of characteristics for an algorithm to search for securities based on predetermined criteria.

Algorithms

Quantitative strategies remove a large portion of emotional sentiment from trading, but still requires some intelligent setting of conditions and parameters.
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Securities Selection

An important factor in building optimal models is the decision process to select which securities will be held. Our selection process provides a second filter that helps to narrow our selection of holdings to meet our high conviction standards.

Models

Our multiple algorithmic strategies are enhanced by combing similar mandates to create our six models.

Portfolio Construction

Portfolio construction should be about structuring a portfolio in a way that stands the best chance of meeting a stated investment goal and within acceptable level of risk. Our Risk Analytics Dashboard builds and optimize a client’s unique portfolio on two levels.
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Risk Management

Long term wealth prosperity has a lot to do with money management techniques incorporated in a systematic risk management approach.

ALGORITHMS

Our algorithms and quantitative methods simplify the complex market conditions making them more accessible and useful to make important financial decisions. It is a combination of art and science, achieving a sophisticated simplicity. Each factor yields an outcome-oriented investment opportunity.

The proprietary algorithms are defined by their strategic focus on Fundamental and Technical characteristics. Each algorithm represents a different investment objective that has been stress tested to verify its alpha-generating ability throughout historical scenarios to prove that the idea is worth pursuing. Several of these factors, or ideas, are combined to construct our individual models. Based on a clients’ risk and return objectives, a unique portfolio is designed from the models using our Risk Analytics Dashboard.

Our algorithms not only contain buy rules, but also contain sell rules which is part of our risk management process. Through back testing we have refined this mathematical process of when sell decisions should be made.

SECURITIES SELECTION

Algorithms screen and rank stocks from their stock universe based on different criteria. Securities are then selected for each factor and held as long as they fit the pre-defined rules for that factor.

MODELS

We use a diversification of ideas (algorithms) to capture market opportunities and maximize return potential, rather than using broad diversification to reduce risk.

PORTFOLIO CONSTRUCTION

Building high-conviction portfolios, by constructing portfolios based on risk factors instead of asset classes, we can potentially build more efficient portfolios that require less risk to achieve competitive returns. This also helps minimize overexposure to a particular risk factor within a portfolio. Using our proprietary stock selection model and portfolio constructed algorithms we aim to achieve lower absolute risk than the market with a similar or higher return.

RISK MANAGEMENT

Our proprietary Corrections and Crashes Blueprint is an additional overlay that provides emergency sell rules, manual sell overrides, and hedging rules. These have been stress tested during times of high volatility and market downturns to create an added layer of risk management to decrease human error in protecting capital.

Volatility-based risk management: Selective exposure to volatility can provide an effective hedge to the rest of the portfolio through uncorrelated diversification. This strategy opportunistically invests in VIX-linked exchange-traded products based on changing volatility environments.