RQA Global Adaptive Momentum

Dynamic Multi-Asset Investing

The Multi-Asset strategy tactically allocates capital across major asset classes based on quantitative methods.  Unlike common static approaches to asset allocation such as the 60/40 Stock-Bond portfolio, RQA uses a dynamic approach to preserve capital in periods of economic contraction and grow capital during periods of economic expansion. 

Quantitative Methods to Systematically Allocate Capital Across Asset Classes

RQA uses time tested methods rooted in economic and behavioral finance theory to weight a portfolio of global asset classes that provides the highest probability of maximizing returns per unit of risk.  Using the flexibility of multiple assets classes allows an investor access to multiple lowly correlated return streams which provides an increase in overall portfolio diversification.  The end result of this process is to target a smoother less volatile investment experience with lower volatility and overall drawdowns compared to an investment in the S&P or static portfolio.

Simulated Allocation Across Asset Classes

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Benefits to Dynamic Multi-Asset Strategies

Dynamic multi-asset approach allows for tactical portfolio position to shift during various economic environments.  Deploying an evidenced base method to re-allocate portfolio funds depending on market environments reduces the over concentration of risk that is exhibited within most static or heuristic methods.  Key benefits of a dynamic multi-asset strategy include:

  •          Removes the constraints of static portfolio with “go anywhere” style

  •          Reduces monthly and annual portfolio variance

  •          Reduces peak to trough drawdowns compared to traditional portfolios and 60/40 portfolio

  •          Overall diversification benefits due to low-moderate correlation to S&P and 60/40 portfolio

  •          Consistently rotating into those asset classes exhibiting a higher probability of a better return profile

  •          100% rules based approach systematically tilting capital allocation without any emotions or bias’

Supporting Research

Taking Diversification a Step Further

Enhancing Returns with Momentum

A Trend Following Approach

When Blackjack Meets Investing