Investment Management Considerations
Other considerations when selecting this alternative investment approach:
1. There is a level of trust involved between the parties. You trust us to invest your money prudently and according to our Chicago Quantum Net Score model. We trust you to remit our fees after each trading month. We structure the investment process to minimize financial risks between us.
How? We put a large custodian between us. You open an account and deposit funds into a Charles Schwab account under your name. You provide us trading authorization, and we do not accept the right to withdraw funds. We cannot pay ourselves. You control your money. We make the trades, and Charles Schwab provides the custodian and brokerage services on our behalf. You receive and review our monthly invoice and remit payment monthly for our trading services.
2. This portfolio strategy should be limited to a portion of your investable capital. It is intended to provide a quantitative edge on a hedged basis.
3. The CQNS model has been run since it was developed and described in three pre-print arXiv publications in 2020, and in multiple Medium and www.chicagoquantum.com and videos. We have published results of the model on an ad-hoc basis. However, past performance does not guarantee future success.
4. Fund processes & procedures have been developed and tested during the 2022 bear market and is therefore sensitive to minimizing significant drawdowns. These procedures will require modification if we re-initiate a bull market.
5. There are fees associated with investing in this fund, which will be described fully in our prospectus and brochure. They include asset-based fees and performance-based fees.
6. Your funds will be held by either your custodian and brokerage firm, or by our outsourced custodian (currently The Charles Schwab Corporation) as a managed separate account. We will be given trading authorization over that account.
7. You maintain sole authority to withdraw funds. We do not accept the right to withdraw funds from your account (in other words, we are non-discretionary investment advisors).
8. This managed account strategy, and its risks, may not be appropriate for all investors. It operates best in liquid, normally operating US stock markets with reasonable amounts of liquidity and volatility.
9. You open up a margin account with our custodian (or your own custodial firm) so we can both go long and short on investments. At times, we may have nominal positions that exceed your investment amount. For example, during our testing period we had a maximum of just under $70,000 invested for a $50,000 account as our short and hedging positions grew.
1. There is a level of trust involved between the parties. You trust us to invest your money prudently and according to our Chicago Quantum Net Score model. We trust you to remit our fees after each trading month. We structure the investment process to minimize financial risks between us.
How? We put a large custodian between us. You open an account and deposit funds into a Charles Schwab account under your name. You provide us trading authorization, and we do not accept the right to withdraw funds. We cannot pay ourselves. You control your money. We make the trades, and Charles Schwab provides the custodian and brokerage services on our behalf. You receive and review our monthly invoice and remit payment monthly for our trading services.
2. This portfolio strategy should be limited to a portion of your investable capital. It is intended to provide a quantitative edge on a hedged basis.
3. The CQNS model has been run since it was developed and described in three pre-print arXiv publications in 2020, and in multiple Medium and www.chicagoquantum.com and videos. We have published results of the model on an ad-hoc basis. However, past performance does not guarantee future success.
4. Fund processes & procedures have been developed and tested during the 2022 bear market and is therefore sensitive to minimizing significant drawdowns. These procedures will require modification if we re-initiate a bull market.
5. There are fees associated with investing in this fund, which will be described fully in our prospectus and brochure. They include asset-based fees and performance-based fees.
6. Your funds will be held by either your custodian and brokerage firm, or by our outsourced custodian (currently The Charles Schwab Corporation) as a managed separate account. We will be given trading authorization over that account.
7. You maintain sole authority to withdraw funds. We do not accept the right to withdraw funds from your account (in other words, we are non-discretionary investment advisors).
8. This managed account strategy, and its risks, may not be appropriate for all investors. It operates best in liquid, normally operating US stock markets with reasonable amounts of liquidity and volatility.
9. You open up a margin account with our custodian (or your own custodial firm) so we can both go long and short on investments. At times, we may have nominal positions that exceed your investment amount. For example, during our testing period we had a maximum of just under $70,000 invested for a $50,000 account as our short and hedging positions grew.