Quantitative, pure data driven analysis, for portfolio and strategy modelling that adds value to every aspect of the investment process.
Quantitative Investment Process
We provide critical support for investment professionals with our quantitative analysis services and automated tools which add value, transparency, and rigor to the investment process. Our clients have access to our extensive offering of existing tools and, for specific requirements, our team of PhD’s, highly specialized engineers, and market practitioners are capable of delivering solutions tailored to your needs. We help make your good ideas great and your great ideas implementable.
Selection & Replication
Utilizing systematic and mature quantitative processes we help you to find the best managers and instruments to construct your portfolio. We apply a risk-factor approach to further describe portfolio behavior. Selection & Replication also accounts for the selection of the most appropriate benchmark for your managers. For funds with unknown allocations underlying risks can be estimated with our replication techniques. This methodology will allow you to:
- Identify whether a fund or manager generates alpha
- Find a more transparent and cost efficient strategy utilizing smart beta ETFs
- Identify non-linear behavior and better assess the risk of such exposures
- Discover non-linear and derivative driven instruments which can mimic the risk-return characteristics of the fund with a potentially lower cost base and other more favorable conditions
Allocation & Rebalancing
If you are interested in improving your portfolio allocation process or your timing for rebalancing, a key success factor is to find the underlying linear and non-linear risk factors within your portfolio. This enables you to:
- Identify true contribution of active and passive funds to expected risk-return profile
- Improve your allocation methodology whether considering adding, removing, or maintaining your current holdings
- Identify the underlying factor allocation of your portfolio and optimize it according to your objectives
- Enhance rebalancing by considering the business cycle and its link to underlying risk factors
Monitoring & Risk Management
Improve traditional methodologies of ex post performance attribution and risk management with an ex ante, linear and non-linear dynamic factor-based approach. This will help you to:
- Periodically monitor any fund in which you are invested, even non-public, thanks to our factor-based replication techniques
- Correct for biased risk estimates characteristic of illiquid investments and achieve more accurate attribution measurements
- Constantly evaluate manager performance by monitoring alpha statistical significance, systemic sensibilities, as well as the ability to estimate future performance derived from the predefined relationship of our factors to the business cycle
- Enhance your risk metrics by forecasting volatility, correlations, and other distribution moments using models such as multivariate GARCH among various others
- Improve your portfolio stress testing under different macroeconomic scenarios with a factor-based approach clearly linked to the business cycle
Value Proposition
Industry Experience and Academic Expertise
C U A N T S E R V offers an effective mix of investment industry experience and academic bench depth. Our leadership team consists of individuals with accreditations and experience such as: PhD in Finance, PhD in Financial Engineering, and International CIO. In addition, our analysis team includes quants with diplomas and Masters Degrees in Statistical Sciences, Mathematical Engineering and other related areas of quant studies.
What are you waiting for?
Contact Cuantserv today and start making more informed investment decisions, better serve your clients precise investment objectives, and create new opportunities for your advisory firm, family office, or wealth management business.