Our Strategies
Smart Airbag - Helping You Stay Confidently Invested in Equities.
Overview
PURE
Performance Under Resilient Environment (PURE)
Long-only strategy on US equities (S&P 500 and Nasdaq-100, equally weighted) with dynamic risk hedge
Smart Airbag model (see description below) helps reduce volatility and drawdowns during global economic downturns
Equity exposure adjusted according to prevailing market resilience: 100% exposure target with 5-130% range
Designed for consistent alpha
No minimum investment, daily liquidity
CALM
Consistent All-Weather Low-Volatility Mandate (CALM)
Long-only asset allocation strategy on world equities (MSCI World), fixed income, gold and commodities with dynamic risk hedge
Smart Airbag model (see description below) helps reduce volatility and drawdowns during global economic downturns
Seeks to deliver consistent risk-adjusted absolute returns in all phases of the market cycle (high/low, growth/inflation)
Designed for peace of mind in all market conditions
No minimum investment, daily liquidity
TREND
Long-only momentum and trend-following strategy on 30 equally weighted US stocks (MSCI USA All Cap)
Aimed at providing higher returns than the broad US equity market (S&P 500) without the use of leverage, yet in return accepting higher idiosyncratic volatility
Smart Airbag model (see description below) helps reduce volatility and drawdowns during global economic downturns
The strategy serves as a complementary addition to a diversified portfolio
Designed for alpha exposure with low long-term correlation to the broad US equity market
No minimum investment, daily liquidity
All simulations were run point-in-time (free of survivorship bias) and out-of-sample for most realistic results. Performance is based on historical data, adjusted for fees and transaction costs. For informational purposes only. Past performance is not necessarily indicative of future results. The displayed performance does not include any subscription or redemption fees or commissions. S&P 500® is a registered trademark of S&P Dow Jones Indices LLC. Nasdaq-100® is a registered trademark of Nasdaq, Inc. MSCI World and MSCI World All Cap are registered trademarks of MSCI Inc. These strategies are not sponsored, endorsed, or affiliated with S&P Dow Jones Indices LLC, Nasdaq, Inc., MSCI Inc., or their respective affiliates.
Smart Airbag for Capital Preservation
What is Smart Airbag?
Reliable risk management is imperative for any investment. To achieve this, we have designed and implemented the Smart Airbag algorithm, a model successfully in use since 2019. This one serves as a cornerstone of all our investment strategies across asset classes. Simply put, the model adjusts market exposure by shifting from risky assets (equities) to low-risk assets (money market) based on the prevailing Global Market Resilience, addressing foreseeable market turbulence without overburdening the investment process or compromising long-term returns.
Why use Smart Airbag?
Global Market Resilience comprises several unbiased macro indicators that filter daily for signs of unrest in the global economy and markets. While each market may exhibit its own behavior, major corrections often show a strong correlation between markets. For assets that tend to rise gradually but decline sharply, integrating the Smart Airbag can be highly effective in protecting capital.
Why is Smart Airbag superior?
Market exposure based on the Global Market Resilience enables investors to stay confidently invested in risky assets (equities) without needing to reduce exposure due to daily market fluctuations. The indicator was developed using a strictly objective approach, avoiding overfitting at all costs.
Reasons to invest
Daily Liquidity
All strategies we develop ensure daily liquidity. Product providers used for implementation are vetted to ensure reduced BID/ASK spread and no hidden costs.
Experience
We have honed our craft over a decade in the industry at two market leading Swiss investment houses with strong quantitative offering, Bank Vontobel and Leonteq Securities.
Alpha Focused
We orientate ourselves after alpha (outperformance), after fees in all quantitative investment strategies we develop. In the long term, this should not only result in exponentially beating inflation, but also building wealth.
Empirically Backed
All strategies we develop are built on the back of renowned academic international research, as well as external and internal empirical results. We personally invest in all strategies we develop.
Dynamic Risk Exposure
Exposure is adjusted from 100% to 0% depending on risks emerging from macroeconomic data and market dynamics. Liquidity gets compensated daily with the prevailing overnight interest rate (SOFR) with no deduction.
Daily Liquidity
All strategies we develop ensure daily liquidity. Product providers used for implementation are vetted to ensure reduced BID/ASK spread and no hidden costs.
Experience
We have honed our craft over a decade in the industry at two market leading Swiss investment houses with strong quantitative offering, Bank Vontobel and Leonteq Securities.
Alpha Focused
We orientate ourselves after alpha (outperformance), after fees in all quantitative investment strategies we develop. In the long term, this should not only result in exponentially beating inflation, but also building wealth.
Empirically Backed
All strategies we develop are built on the back of renowned academic international research, as well as external and internal empirical results. We personally invest in all strategies we develop.
Dynamic Risk Exposure
Exposure is adjusted from 100% to 0% depending on risks emerging from macroeconomic data and market dynamics. Liquidity gets compensated daily with the prevailing overnight interest rate (SOFR) with no deduction.
Our Services
3 Steps to an AlphaX Partnership
You already manage or are planning to manage your own investment strategy through managed accounts, an AMC, ETP, SPV or fund. For this you would like input from our alpha-focused models. We look forward to advising you.
01
Initial Consultation
Schedule a meeting to discuss your investment goals, risk tolerance and preferences, ensuring we understand your unique needs.
02
Investment Proposal
Based on our exchange, we create a customized quantitative investment strategy designed to help you achieve your financial objectives, all while considering market trends.
03
Implementation and Support
Once you approve the strategy, we'll implement an investment process and provide ongoing support, including regular updates and possible optimization adjustments.
Frequently Asked Questions
What is alpha?
Alpha represents the additional return an investment strategy generates beyond what would be expected based on a benchmark. It reflects performance after accounting for the risk-free rate and the return driven by market exposure (market premium multiplied by beta). Alpha is the sole factor that can be attributed to the skill of the strategy developer/manager. Notably, alpha can also be negative, signifying a loss in performance due to active management. On the other hand, a positive alpha is often viewed as the value-added element that justifies the fees investors are willing to pay.
What are quantitative investment strategies?
Quantitative investment strategies are transparent, rule-based, liquid, and cost-effective approaches typically executed as indices. They are designed for all major asset classes in financial markets – such as equities, currencies, interest rates, credit, and commodities – and are continually evolving to encompass a broader array of investment ideas.
What types of quantitative investments are there?
Quantitative investing encompasses various data-driven strategies that leverage statistical models, data analysis, and sometimes machine learning to inform investment decisions. Key approaches include factor-based investing, which focuses on specific drivers like value or momentum, and algorithmic trading, such as high-frequency trading and statistical arbitrage, which capitalize on real-time price movements. Machine learning models help uncover complex patterns in data, often using sentiment analysis, while event-driven strategies focus on market-moving events like mergers or earnings releases.
Other strategies include trend-following for momentum-based investing and market-neutral strategies that balance long and short positions to manage risk. Risk parity and portfolio optimization aim to balance risk across asset classes, while volatility strategies use derivatives to benefit from price fluctuations. Arbitrage strategies exploit pricing inefficiencies, and ESG-focused quantitative strategies incorporate environmental, social, and governance factors into investment models.
Each strategy is designed to maximize returns while managing risks, using quantitative methods to systematically capture opportunities across various market conditions. These methods provide a structured approach to investing that relies on data and statistical insights rather than subjective judgment.
What is positive convexity?
An investment strategy is considered positively convex if its returns exhibit upward curvature relative to its benchmark. Ideally, an investment strategy exhibits both upward and downward convexity. Convex investment strategies are often closely aligned with the benchmark in normal market conditions and tend to outperform in upwards or downwards trending markets. However, there are no guaranteed gains.
How do I start investing systematically?
Investing without emotion is inherently the smarter choice. Reach out to us, we look forward to discussing your options. Our quantitative investment strategies can be studied in the “Strategies” section of our website.
