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WE ENJOY DISCOVERY.

At First Quadrant, we ask different questions. Even if we reach the same conclusion as others, we probably took an atypical path to get there. This may sound like splitting hairs, but to us it's as fundamental as... the way we think.

A team of individuals with diverse backgrounds in finance, science, and mathematics generates FQ's research. What emerges is a blend of fundamental rational thought, rigorous quantitative processes, and intuition honed over years of market experience.

 
     
 
 

FIRST QUADRANT CLASSICS
• Diversification & Risk Management: What   Volatility   Tells Us
• Piloting Quantitative Investment Strategies
• Treading Where Alpha Does Not Sum to Zero
• Alpha Shop
• Wine Lovers Guide to Active Investing
• The Case for Quantitative Management
• Thoughts on Grinold and Kahn’s “Fundamental
  Law of Active Management”


ESSENTIAL BETA
• Balancing Betas – Essential Risk   Diversification
• Essential Beta – Not All Betas Are The Same
• Rethinking Beta

GLOBAL TAA / GLOBAL MACRO
• What To Make, and Not Make, of the Recent   Performance of Global Macro
• The Emergence of TAA as Global Macro
• Where TAA and Market Timing Part Company
• Domestic TAA Is to Global TAA What the Calculator   Is to the Desktop Computer
• Opportunities in Global Bonds
• Bottom Up Valuation in Global Asset Allocation
• Sector Rotation: The New Holy Grail or the Latest   Fad?

CURRENCY
• Arguments Against The Arguments For Not   Acting   On Currency Risk
• What to Make of Active Currency Managers'  Recent   Underperformance
• A Simple Measure of Purchasing Power Parity
• Optimal Currency Hedge Ratios – Redux
• Putting Active Currency Management at the Top
  of Your 2004 Agenda

• Purchasing Power Parity: Even the Big Mac Can   Predict FX Rates
• Currency Management

EQUITIES
• Alpha and Beta in Market Neutral
• Valuation, Without a Value Bias
• Excess Returns, Stock Splits, and Analyst Earnings   Forecasts

OPTIONS
• Options and Other Protective Strategies
• Using Options in a TAA Process

TAX-ADVANTAGED EQUITIES
• Tax Management, Loss Harvesting, and HIFO   Accounting
• Loss Harvesting: What’s It Worth to the Taxable   Investor?
• Tax-Advantaged Investing
• How Well Have Taxable Investors Been Served in   the 1980’s and 1990’s?
• The Management and Mismanagement of Taxable   Assets

REBALANCING
• Rebalancing a Global Policy Benchmark: How to   Profit from Necessity
• Rebalancing: Dull and Unimportant... Not!
• Tactical Rebalancing


 


FQ PERSPECTIVES
FQ Perspectives gives a sense of the rigorous analytic thinking that backs up our decision making. It’s also a place where we share with you some of the ideas we’ve been kicking around among ourselves.

• Counter-Point to Risk Parity Critiques
• A Euro Perspective
• Managing Committed Capital During the   Drawdown and Reinvestment Periods
• How To Beat The Currency Market Without   (Much) Skill
• Forward With Care
• Did Diversification Fail?
• Using Volatility Regimes: The FQ MRI (Market   Risk Index)?
• Having Your Cake and Eating It Too?
Arguments Against The Arguments For Not   Acting On Currency Risk
• Best of Both Worlds
• Balancing Betas – Essential Risk   Diversification
• Essential Beta – Not All Betas Are The Same
• Rethinking Beta
• Diversification & Risk Management: What   Volatility Tells Us
Is Your IC Stable Enough to Benefit from Short   Extensions?
• Piloting Quantitative Investment Strategies
• What To Make, and Not Make, of the Recent   Performance of Global Macro
• Taking a Global View in 2007
• What to Make of Active Currency Managers'   Recent Underperformance
Risk Shouldn't Be the Elephant in the Room
• Treading Where Alpha Does Not Sum to Zero
• The Emergence of TAA as Global Macro
• Transaction Cost Management
• A Simple Measure of Purchasing Power Parity
• Optimal Currency Hedge Ratios – Redux
• Alpha Shop
• Alpha and Beta In Market Neutral

  BREADTH & DEPTH ARCHIVE
We’ve discovered that a lot of interesting things in the world actually relate in surprising
ways to our favorite topic — investment.


OTHER PUBLICATIONS
Pensions & Investments, "Currency Managers Jump into Volatile Markets to Score Big", by Drew Carter, November 11, 2008. Includes interview with Dori Levanoni, FQ Partner.

PlanSponsor, "A Matter of DNA", Q&A: FQ and the Evolution of the Search for Risk-Controlled Alpha: Rick Roberts, FQ Partner and Nelson W. Wicas, PhD, Director.

Euromoney – Portable Alpha Handbook, "Pizza Lover's Guide to Portable Alpha... A Portfolio Construction Technique", by Rick Roberts, FQ Partner and Steven Richey, CFA, FQ Partner.

 
 
   

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This material is for your private information. The views expressed are the views of First Quadrant, LP only as of the date
written and are subject to change based on market and other conditions. All material has been obtained from sources
believed to be reliable, but its accuracy is not guaranteed.