Disintermediated Performance
and Robust Risk Analysis
Long/Short Equity | Multi-Strategy | Fixed Income | Commodities
Event Driven | Relative Value | Global Macro | Managed Futures | Emerging Markets
Two Sigma | Marshall Wace | Bridgewater | AQR | Renaissance | ValueAct | Man Group | …
Simple Model Portfolios
Diversifying Indexed Alternative. Reducing single-manager risk while accessing consistent top percentile performance with minimal fees …
in a tax efficient manner.
The minimization of tracking error to the market while allowing for significantly greater risk-adjusted performance.
Solving for 2 pillars that define investor psychology: uncertainty and risk appetite.
Optimal and Efficient long-term
Outperformance
Minimization of Key Investment Risks
Elimination of single-manager risk
Minimization of portfolio construction over-optimization risks: correlation and volatility estimation errors
Completely transparent and fully liquid
Optimized for tax efficiency
Obtain up to 100% of the performance of the elite diversifying hedge funds with minimal tracking error
Optimized for minimal transaction costs and portfolio turnover
Resulting fees on a net exposure basis are up to 100 times less than the underlying constituents
Why Hedge Fund Indices?
Some Hedge Fund Categories are among the best diversifiers
Single-Manager Risk: Unable to pick a top performing fund ex-ante (individual fund performance is not persistent)
Leverage the collective knowledge of the top hedge funds and managers
An Equally-Weighted Hedge Fund Index consistently dominates in Total Returns, Volatility, and Risk-Adjusted Returns over the average constituent fund in all categories*:
Dominates on average over 2/3 of constituent funds in the Equity and Event Driven Category
Dominates on average over 7/10 of constituent funds in the Relative Value Category
Dominates on average over 8/10 of constituent funds in the Macro Category
Dominates a Non-Equally Weighted Portfolio of Hedge Funds the majority of the time
A Hedge Fund Index is a Consistent Top Percentile Performer
* Akos Beleznay, Michael Markov, Alexey Panchekha: Hidden Benefits of Equal Weighting: The Case for Hedge Fund Indices
Low expenses and highly cash-efficient exposure
Replicating the pre-fee performance with minimal tracking error to the leading investment funds utilizing a fully top-down approach (bottom up replication leads to single-manager risk)
Robust methodology of performance capture: identifying a time varying subset of markets and factors and positioning to emulate future performance
Trades the most highly liquid markets, which minimizes crowding, illiquidity and frontrunning risks
A Distinctive Offering
We aim to provide clients with efficient portfolios.
We offer customizable products for all types of investors: institutional grade hedge fund indices and robust complementary solutions.
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