In managing its tactical investment strategies, QA utilizes the principles of momentum as the foundation of its investment discipline. This starts with the basic premise that opportunities exist across global stock and bond markets, as well as non-traditional assets such as commodities, currencies and real estate, and that investments within these asset classes move in and out of favor on a regular basis. These opportunities, and related risks, are created by the ever-changing dynamics throughout the global capital markets.

QA’s unique application of momentum-based investment management provides investors with the potential to capitalize on these global opportunities while seeking to manage the inherent risks. Our disciplined investment process helps identify trends within the global capital markets and guide our investment selection.

  • Momentum investing is similar to Newton’s first law of motion: An object in motion tends to stay in motion. A number of significant academic studies suggest that a similar reality exists within the global capital markets.
  • Many segments of the global capital markets will exhibit trends (either up or down) that persist for a period of time. This can be seen in equity styles, sectors, international securities and other asset classes that regularly move in and out of favor. Momentum within these trends provides insight into potential future opportunities and risks.

Opportunities in US Equity Styles

This chart illustrates how the US equity styles have moved in and out of favor. Our momentum-based approach seeks to capture these opportunities for the benefit of investors.

Annual Return Percentage for US Equity Styles

QA’s Momentum-Based Investment Process

  • QA systematically analyzes price trends and momentum characteristics across the global capital markets to identify opportunities and risks by using our proprietary research
  • Our portfolio management team then evaluates the research in light of other available political, financial, economic and market information, including research from third parties, and selects investments for each strategy