Research

To quote management guru Peter Drucker: “It's not the plan that's important, it's the planning."Most MNEs do have a clearly defined strategy at corporate level. However, in our experience, this is not as common at regional and functional level. Research is our lifeblood. Without it, we can neither exist, nor survive in the future. We believe that this is where most investors fall short. Without proper research, no investment strategy can beat a buy-and-hold strategy apart from having plain luck.

In our experience, even the tiniest difference in investment strategy can have a huge impact performance, and therefore this critical element must be paid very close attention to. First, research helps us developing new investment strategies through guidance by scientific principles from financial economics, physics and other natural sciences. Second, research helps us ensuring robustness of our strategies through backtesting, forward testing and out-of-sample testing. Third, it also helps us setting optimal parameters for both risk and money management. The result are high-performing investment strategies that have a high potential for delivering solid returns regardless of market sentiment.


Our Investment Philosophy

The investment philosophy of QuantCore is based on the debunking of the two most ingrained myths in financial economics.

Myth #1: Markets are Efficient.

According to the proponents of the Efficient Market Hypothesis, stock prices reflect all available information about companies and investors can’t beat the market indexes by stock picking. This is true in theory, however, reality tells a different story. First, investors are far from rational - history is replete with investors that have made huge fortunes, but also created disasters through their greed, anxiety and so forth. Secondly, even if all information could be accessed by all investors simultaneously, investment decisions would still not be homogenous as the information is processed differently by different investors due to different skills, knowledge, attitudes and mentality. Warren Buffet put it very elegantly once by saying that "If markets were efficient, I'd be a bum on the street."

Myth #2: A buy-and-hold strategy will beat any other strategy in the long run.

Due to the efficient market hypothesis, proponents of it believe that any other investment strategy than buy-and-hold is futile since the index cannot be beaten. However, despite a strong positive general upward trend over the past decade, markets have been interspersed by sharp pull-backs triggered by various macro events (e.g. Flash Crash, COVID-19 pandemic etc.). As such, minimizing losing trades is equally important as maximizing winning trades, hence active management is sensible and worthwhile.

Strategies

QuantCore constantly develops and deploys new algorithms. For more in-depth information, please contact us directly.