Alpha + Incubator
An environment favorable for generating excess returns.
May the alpha be with us.
We're a quant investment research studio developing long-term trading strategies.
A large part of what we do is researching certain hypothesis, collecting and analyzing data, building algorithms around this data and rigorous backtesting. A big advantage of this quantitative approach is that our strategies stay consistent through time and are not affected by emotional decision-making.
Our long-term strategies seek to achieve equity-like returns with lower volatility and drawdowns compared to traditional funds. We do this by allocating risks in a balanced manner, adapting to market conditions and employing active security selection and asset allocation. We believe our approach is superior to traditional funds that allocate by capital (e.g. 60% stocks and 40% bonds), which are not risk managed throughout time and are reliant on strong economic growth environments in order to generate returns.
Diversified through ETF allocation
All our strategies invest in Exchange-Traded Funds (ETFs). We do not invest in individual stocks. This allows us to be more diversified while being less risky in nature.
Cost efficient and easy to replicate
Most of our strategies allocate between a select few assets and are rebalanced only once a month. This makes them easy to replicate manually. It also minimizes the number of transactions we need to execute, thus saving on transactions costs and taxes.
We backtest our strategies using historical data, usually as far back as the 1990s or sometimes even the 1970s. This gives us a pretty good idea of returns and drawdowns that we can expect in the future. Our active approach to investing also allows us to adapt our allocation during unfavorable market conditions, thus minimizing the risks of investing in the stock market.