Investment Management Services
Chicago Quantum Net Score / Smart Volatility
Managed Accounts
The objective is to profit from the differences in stock performance without regard to overall market performance. This is a long/short set of managed accounts held with our custodian that share the same strategy and trades. You can utilize our investment management services that employ this strategy.
This strategy leverages the Chicago Quantum Net Score model. The long positions are a portfolio of stocks that the model selects that minimize historical variance and maximize expected return.
(Mathematically, we minimize this formula for the portfolio: (Risk minus Return).
The short positions are US common stocks that the model selects that have maximize historical variance and minimize expected return. A less aggressive alternative short-position is to short a risk-equivalent amount of a diversified equity index fund.
(Mathematically, we minimize this formula for each stock: (Return minus Risk).
We tune the selection and position sizes of stocks in both the long and short portfolios by running our proprietary model frequently (typically daily) and adjusting / rebalancing positions frequently (typically daily) while working to minimize transaction costs.
This strategy leverages the Chicago Quantum Net Score model. The long positions are a portfolio of stocks that the model selects that minimize historical variance and maximize expected return.
(Mathematically, we minimize this formula for the portfolio: (Risk minus Return).
The short positions are US common stocks that the model selects that have maximize historical variance and minimize expected return. A less aggressive alternative short-position is to short a risk-equivalent amount of a diversified equity index fund.
(Mathematically, we minimize this formula for each stock: (Return minus Risk).
We tune the selection and position sizes of stocks in both the long and short portfolios by running our proprietary model frequently (typically daily) and adjusting / rebalancing positions frequently (typically daily) while working to minimize transaction costs.
We describe this service, along with all costs, in our brochure.
We have a $500,000 minimum investment.
We have a $500,000 minimum investment.
Reduce volatility while retaining expected returns |
Hedge risks with both long & short positions |
Unique portfolio management strategy offers diversification |