Systematic, rule-based investment process and integrated risk management

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Our fully systematic investment approach aims to systematically detect and exploit market inefficiencies, trend-following anomalies and long-term risk premia in global financial markets.

We believe that systematic trend-following strategies can generate attractive uncorrelated returns if implemented within a sophisticated signal generation, risk allocation and implementation framework. We offer maximum transparency, liquidity and capacity while avoiding unnecessary complexity in terms of modelling and the use of financial derivatives. We strive to offer investment solutions with the best possible long-term rate of return while adhering to strict risk management techniques.

Why us

Why choose us to cooperate with

01.Consistency

One of the key factors of Quantica’s sustained success is consistency and robustness in the strategic development of the Quantica Managed Futures Program. Since 2005, we have held on to our original conviction about systematically capturing relative trend inefficiencies in the most liquid futures markets globally.

02.Uniqueness

Our approach to trend-following is risk-based and seeks to capitalize on a robust and stable identification of trending and diverging markets. Our robust and proven investment process delivers style-consistent trend-following returns with a high potential to outperform.

03.Efficiency

The approach’s bottom-up portfolio construction and risk management processes lead to a gradual daily rebalancing of positions, depending on the relative attractiveness and risk characteristics of each market traded. The implementation process in exchange-traded and liquid markets is highly efficient, leading to minimal turnover and low transaction costs.

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The beauty of our investment approach is that it offers an uncorrelated source of absolute returns over the long term, as well as smart diversification to conventional asset classes and hedge fund strategies.

Dr Bruno Gmür

Founder and CIO at Quantica Capital

Key characteristics

We are following trends

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Smart diversification

The dynamic correlation structure of trend-followers allows them to hold an opportunistic position depending on changing market regimes. Trend followers can take on long and short positions and benefit from both rising and falling market prices. They may offer a negative correlation to equity markets during bear markets, a positive one during bull markets and access to positive risk premium during side-ways markets. Trend-followers have hence the potential to generate positive returns in any market environment.

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A hedge against inflation risk

A trend-follower’s dynamic and diversified risk allocation process puts it in an ideal position to capture inflation-driven price changes across a wide range of asset classes. These intrinsically adaptive characteristics provide trend-followers with a robust sensitivity profile in an inflationary environment. Diversified trend-followers may hence offer protection against rising inflation, without sacrificing expected long-term returns.

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Reduced portfolio volatility

By adding a trend-following product to a traditional portfolio of bonds and stocks, overall portfolio volatility can be significantly reduced, and the Sharpe ratio increased, improving risk-adjusted returns. Although each individual market traded may appear risky, put together, they tend to balance each other out.