QUANTITATIVELY DRIVEN

SYSTEMATICALLY EXECUTED

OUR PHILOSOPHY

At our core we are risk managers.  We use data to develop risk management techniques designed to uncover better investment opportunities.

 

OUR PHILOSOPHY

The largest sources of alpha lie in the efficient reduction of unnecessary risk exposure

We seek to generate exceptional risk-adjusted & absolute returns for our investors and believe to do this we must first and foremost understand and efficiently reduce exposure to unnecessary risk, particularly during times of market crisis.  We believe by using statistical and mathematical based approaches rather than theories, we can better monitor our risk exposures to take advantage of favorable investment conditions.

We use quantitative reasoning to manage potential headwinds so that when a new risk is identified in our investment landscape, we can rationally determine the most effective way to approach it:

  • Avoid it - reduce or eliminate exposure. 

  • Hedge it - temporarily transfer until it subsides.

  • Exploit it - when the opportunity is evident.

OUR INVESTMENT APPROACH

All of QST's strategies utilize a disciplined process for managing risk over over various market cycles.  The core approach raises and lowers exposure to equities over changing market conditions using proprietary trading signals.  Vast, rich data sets manage statistical and mathematical principles designed to identify underlying trends and anticipate reversals.

A strong attribute of all of our trading strategies is that they are designed to do well in times of market crisis.  Depending on the strategy, we will seek to avoid, hedge, or exploit extended stock market declines, giving us the ability to generate 'crisis alpha' which we believe is integral to great long-term returns.  We spend significant time in research and development testing and scrutinizing current and potential models to reduce unnecessary risk exposures and enhance return streams.

All of QST's systematic solutions are built on:

  • Disciplined, repeatable investment processes

  • Robust, detailed risk management

  • Continuous research and development

 
 

R&D is the most critical element of our firm because the opportunity to be better never goes away

We look to enhance our trading programs with the primary goal of pursuing statistically robust alpha sources.  We understand market patterns repeat themselves which offers us the ability to identify statistically measurable behaviors.  We identify these behaviors by formulating a hypothesis that we then test extensively for validation until a binary result is concluded.

Oftentimes what appears to be a simple enhancement can have incremental long-term value.  Any new process must meet strict requirements starting with proof that it can generate a new form of repeatable excess return over multiple market cycles while not having a materially adverse impact on portfolio risk exposure.

From the Ground Up

Our investment process has deep roots that began with a simple belief that if we can limit our exposure to severe market declines, we would be left with incredible upside opportunity.  We began with one trading model that simply raised and lowered exposure to market indices and over time has evolved exponentially into cutting-edge trading systems that have been built level by level.  We continually refine and enhance every element of our process with an engineers mentality of build, break, rebuild, repeat.

Breakthroughs Require Ambitious Mindsets

Our goal is to be the best.  We think outside the box which means investors typically have a hard time fitting us into a box.  Our strategies weren't built to be different, they were built to help us attain our goal.

QST does not provide legal, tax, or accounting advice.  Investors should carefully consider the risks, objectives, expenses and fees before making any investment decision.  The information provided on this website is for informational purposes only and is subject to change without notice.  Investments could result in loss of capital.  The investments and strategies managed by QST may not be suitable for all investors.  Past performance is not indicative of future results.

 

Mission K9 rescues, re-homes, rehabilitates, and repairs retired working dogs.  These are some of the world's most elite military and police dogs who have saved countless human lives in some of the world's most dangerous conditions while asking nothing in return.  Mission K9 is dedicated to giving these American heroes the retirement they deserve.

Giving Back

 

 

We are grateful to do what we love and believe it is important to give back to organizations that are making our world a better place. Some of the missions that are near to our hearts include children's health, military support, and animal wellness.

Shriners Hospitals for Children is an international health care system of 22 hospitals that provides specialty pediatric care. Children with orthopedic conditions, burns, spinal cord injuries, and cleft lip and palate are eligible for care and receive all services in a family-centered environment at no charge.

St. Jude Children's Research Hospital is a pediatric treatment and research facility focused on children's catastrophic diseases, particularly leukemia and other cancers.  Patients and families of St. Jude's never receive a bill for treatment, travel, housing or food.

© 2019 All Rights Reserved

QST Capital LLC

388 Market St, Suite 1300

San Francisco, CA  94111

info@qstcapital.com

415-539-3191

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"In God we trust; all others must bring data."
~W. Edwards Deming