What We Do

Diversifying

Many so-called alternative investments can often exhibit much of the same characteristics as a traditional portfolio, particularly during periods of market crises; therefore, it is important to consider other non-correlated sources of risk in a portfolio that can provide true diversification when it’s needed most, and not just by name.  First Quadrant’s diversifying return solutions seek to provide long-term positive returns regardless of market direction and are designed to be truly uncorrelated to an investor’s portfolio, not simply provide an “excess return”.
 

GTAA/Macro

Rooted in over a 30-year history and evolution of global asset allocation, First Quadrant’s gtaa and macro solutions are designed to tactically and dynamically allocate risk between different assets, factors and ideas to take advantage of opportunities when there is the greatest probability for gains. Our macro strategies invest globally in multiple independent categories that span a wide variety of assets and strategies, including stocks, bonds, currencies, commodities, options, managed futures, risk factors and risk premia.

Currency

First Quadrant’s macro-oriented currency strategy makes diversified investments in developed market currencies using the most liquid instruments in the world. The process is fundamentally based and exploits the drivers of relative value of currency markets while taking advantage of influences of both short-term and long-term capital flows, trade flows and supply/demand pressures. The process is designed to deliver positive returns over a full market cycle, provide non-correlation to other investments, and deliver diversification when needed most.

Commodities

Commodities are a truly unique asset class. In a long-only context, they are notable for their diversifying effect on more conventional portfolios of stocks and bonds, as well as for hedging unexpected inflation and providing exposure to global growth. They also attract varied market participants, from financial speculators to informed commercial traders, creating many opportunities for persistent market inefficiencies. Using a diverse set of fundamental drivers, First Quadrant’s approach to commodities seeks to capture these inefficiencies systematically in liquid futures markets using a long/short or long-biased framework, depending on client goals.

Market Neutral

With a long history of managing equities since 1990 and long/short strategies since 1991, First Quadrant’s Market Neutral Equity strategy is a fundamentally based quantitative equity strategy designed to capture alpha on multiple dimensions, using top-down industry/sector allocations, bottom-up stock selection and factor style tilts. The strategy is designed to be dollar and beta neutral and generate alpha independent of market direction. The process is research intensive, disciplined in its implementation, and employs stringent risk controls.


Please contact us to see how our diversifying return solutions can help meet your specific needs.