Our Investment Process
1
Pick Your Services: Custom portfolio management, financial planning, investing in a QuantStreet strategy, or subscribing to model portfolios.
2
Planning Meeting: Once you let us know what you’re looking for, we’ll have a meeting to learn more about you and explore how QuantStreet might be able to help.
3
Implementation: We’ll then put your plans into action, whether it’s delivering our models to you on a monthly basis, or using our machine learning tools to implement an investing plan based on your risk level.
4
Ongoing Review: We rebalance portfolios on a regular basis to reflect changing market conditions.
Our Investing Process
Algorithmically generated using economic and market data
Qualitative analysis
Portfolio Implementation
We typically invest in major liquid asset classes using ETFs. We can also create customized strategies based on your goals.
We typically choose ETFs that are low cost and highly diversified. Purchasing a single ETF can be like buying hundreds or thousands of individual stocks and bonds.
Many of our ETF providers are leading global asset managers (Vanguard, BlackRock, State Street, etc.).
We use ETFs to access asset classes include US stocks, international and emerging market stocks, US government and corporate bonds, and real estate investment trusts, among others.
We also invest in value and momentum ETFs.
- Value is a strategy that involves buying stocks with relatively attractive valuations.
- Momentum involves buying past winning stocks, and avoiding past losing stocks.
ETFs are highly liquid. They allow us to dynamically reposition the portfolio in response to changing market conditions and opportunities, at low cost to our clients.
We do not use excessive leverage or short-selling in our investments.
Sample Portfolio
According to our model’s assessment during this particular sample period, the assets offering the most attractive reward/risk tradeoffs are S&P 500 stocks, value stocks, high-yield bonds, and an ETF tracking real estate investment trusts.
The portfolio can also maintain some amount of cash, in this case 2.5% of portfolio value.
The portfolio is highly diversified and owns thousands of individual securities via the ETFs.
We rebalance investment portfolios regularly.
Portfolio weights change over time to reflect changing opportunities and risks.
Assets with zero current allocation may have allocations in the future.
Interested in technical details about our strategy? Please contact us at 212-537-3877, email hello@quantstreetcapital.com, or submit this form.
Asset class | ETF | Portfolio weight | Approx. # of securities |
S&P 500 | VOO | 75% | 510 |
US Treasury Bonds | IEF, VGIT | - | 16 |
US Short-term Treasuries | VGSH | - | 98 |
International Government Bonds | IGOV | - | 765 |
US High-Yield Bonds | JNK, HYG | - | 1,350 |
US Investment Grade Bonds | VCIT, VCLT | 15% | 2,100 |
Value Stocks | VTV | - | 360 |
Momentum Stocks | MTUM | - | 190 |
Non-US Developed Market Stocks | VXUS | - | 7,850 |
REITs | VNQ | 5% | 360 |
Commodities | DBC, GSG | 5% | 20 |
EM Stocks | VWO | - | 4,400 |
Cash | - | - | - |
Disclaimer: The actual portfolio will differ from this example. This portfolio is shown only for illustrative purposes.