How QuantStreet Approaches Risk

We know you put tremendous faith in us to carefully manage your assets. Over the course of two decades of investing, we’ve seen the dangers of excessive leverage, short selling, speculative option trading, and other high risk strategies. That’s why we don’t use them, unless you specifically request them.

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 aim to achieve the highest expected return at your risk level.

We invest primarily using exchange traded funds, which create diverse exposure to numerous asset classes and are highly liquid, allowing us to dynamically reposition your portfolio in response to market conditions and opportunities. 

While we use a sophisticated model to drive 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. We offer low risk, moderate risk, and aggressive strategies, and can also design custom portfolios based on client needs. We’ll regularly rebalance your portfolio to manage the risk and return of your investments.

QuantStreet is transparent. By simply logging into your Schwab account, you can see your portfolio and our adjustments in real time. Want to know details about our performance? Just email us and we’ll be glad to share our results:

QuantStreet is also independent. We aren’t affiliated with any larger financial institution, insurance company, or other organization that incentivizes us to prioritize their products, so we never have a special interest in buying or recommending particular investments.    

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