quantumrock announces outstanding performance of strategies in January 2023

AI asset tech group saw a strong performance from all three alpha solution strategies in the first month of the year

Munich-based, award-winning AI and Machine Learning AssetTech company, quantumrock, announces today the outstanding performance of its alpha solution strategies in the release of its first results of 2023, with the quantumrock Absolute Return strategy performing at +5.0%, the quantumrock Equity Alpha strategy performing at +0.3%, and quantumrock Fixed Income Alpha strategy performing at +3.6% in January of this year.

We’ve had a fantastic start to the year with all three of our alpha strategies posting outstanding performance in January. Given the continuing market uncertainties, we expect further fertile ground for our alpha-generating strategies in 2023.

quantumrock’s Absolute Return strategy, which targets market-independent returns via a dynamic combination of the most liquid asset classes, performed at +5.0% in the first month of this year. Moreover, the strategy’s Crisis Alpha sub-strategies were able to improve on the already positive performance of the base beta portfolio, enabling quantumrock Absolute Return to post outstanding results. Through the combination of long equity and bond bias (beta) and alpha-generating sub-strategies, the AI-driven investment strategy shows highly dynamic allocations to the three asset classes: US equities (S&P500 Futures), US fixed income (10-Year US Treasury Futures) and volatility (VIX Futures).

Producing an unexpected but welcome result, the quantumrock Equity Alpha strategy, a Crisis Alpha strategy which combines various alpha sources from long volatility (VIX Futures), short equity (S&P500 Futures), and equity recovery strategies (S&P500 Futures), performed at +0.3% in January, ending the month with a small, yet remarkable, plus. The performance is noteworthy as it shows that quantumrock’s Crisis Alpha strategies do not necessarily have a negative carry in months where equities rise strongly, further demonstrating the benefits of a well-diversified approach. Enhancing investor portfolios in times of crisis, the quantumrock Equity Alpha strategy typically boosts portfolio metrics through an improvement in average returns and a reduction in volatility and maximum drawdown.

Finally, after a very negative year, the quantumrock Treasury Alpha strategy (also known as the Fixed Income Alpha strategy), which combines systematic sub-strategies that predict the US Treasury market’s short-termed movements and take short positions in the 10-Year US Treasury Future accordingly, boasted a positive sigma-2 performance to end the first month of the new year with, performing at +3.6%. This clearly demonstrates that while the strategy only trades short duration risk, it tends to be slightly positively correlated with the bond market on a weekly or monthly basis. The strategy is a strong diversifier of broad bond portfolios and, in most fixed income portfolios, demonstrates portfolio-enhancing characteristics.

About quantumrock

quantumrock is an AssetTech company developing institutional-grade investment solutions from rare and unique alpha sources. The firm’s proprietary, cutting-edge AI platform turns the time-consuming and error-prone process of finding new alpha sources into a scientific, automated, and scalable operation. Together with renowned product partners, the identified alpha sources are wrapped into the highest quality institutional-grade investment products and brought to investors. With quantumrock’s investment solutions, clients can improve their funds and portfolios or tap new investment opportunities in equities, fixed income, factor investing, robo-advisory and hard assets. The AssetTech firm’s client base is spread across the globe and ranges from large multinational banks to local family offices and technology companies. quantumrock collaborates with big-name product partners such as Deutsche Bank and niche experts who are using quantumrock’s solutions for their funds and products. The company is headquartered in Munich, Germany, and comprises 32 international deep tech engineers, capital market experts and top international executives from the banking and technology sector as employees and advisors.

Get in Touch

via your preferred channel of communication!