How QuantStreet Approaches Risk
We know clients put tremendous faith in us to carefully manage their assets. Over many years of investing, we’ve seen the dangers of excessive leverage and short selling, speculative option strategies, and other high-risk strategies. That’s why we don’t use these strategies, unless a client specifically asks us to.
We appreciate the risk-return tradeoff in investing. Risky assets have historically paid a risk premium exactly because investors took on risks to hold them. Our goal is to bear these risks intelligently. You tell us your investment goals or desired risk level, and we’ll implement our process with the goal of achieving the highest expected return at your risk level. We may not be able to achieve this goal — please see the disclosures below.
We invest primarily using exchange traded funds, which create diversified exposure across asset classes and are highly liquid, allowing us to dynamically reposition Tactical Portfolios in response to market conditions and opportunities.
While we use a proprietary machine learning model to inform our decision-making, we understand that real-world markets can behave outside the scope of any model forecast. We carefully vet the model’s recommendations using industry-informed human judgment. Our Tactical Portfolios include low risk, moderate risk, and aggressive strategies, which are regularly reblanced to manage the risk and return of your investments.
You can also choose to investing in a Target-Date Replicating Portfolio, which is intended to replicate the average performance of target-date funds operating at different risk levels. This is a largely passive allocation that may be appropriate for some investors.
You will always be able to see your investments. By simply logging into the custodian’s website, you can see your portfolio allocation. And if you’d like details about our performance, just email us and we’ll be glad to share them: hello@quantstreetcapital.com.