- Advertisement -

Related

QQM: Systematic Market Neutrality with ESG principles

- Advertisement -

Stockholm (HedgeNordic) – Stockholm domiciled QQM Equity Hedge is a systematic, equity-market-neutral absolute return fund based on proprietary quantitative models. The fund’s partners Ola Björkmo and Jonas Sandefeldt have been managing the fund since July 2010, refining the investment model and successively expanding the investment universe. The result has been reduced volatility and a significant performance improvement. QQM Equity Hedge has continuously posted strong performances over the last three years and is ranked as top 10 in the world in its category (Equity Market Neutral) by BarclayHedge over a rolling 3 years period from Q4 2012- Q3 2015. QQM Equity Hedge was also ranked top 10 for the single years 2013 and 2014.

The fund’s strategy is based on behavioural finance theory and its findings in terms of how investors make mistakes because of cognitive and emotional biases, resulting in the mispricing of assets. “The idea is to benefit from an understanding of what drives investor behaviour. Irrational behaviour by many individual investors causes mispricing and creates opportunities for others,” says Ola Björkmo, Partner and Managing Director at QQM Fund Management.
There are several drivers behind mispricing. Overconfidence is one of the more common failings that many individuals suffer from when making investments. Overconfidence often leads to trading too frequently. Confirmation bias is another, where investors use a form of selective thinking, seeking out information that supports their original ideas about an investment, and ignoring information that contradicts it. Anchoring is a third effect, where people tend to attach or anchor their thoughts around a reference point despite the fact that it may not have any logical relevance to the situation. “The costs of implementation can exceed the size pricing errors. Therefore, diligence is required and costs weighed against any possible revenue,” says Sandefeldt.

To read the whole interview in the HedgeNordic Special Report on market neutral strategies, please click here: Market Neutral Strategies 

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Kamran Ghalitschi
Kamran Ghalitschi
Kamran has been working in the financial industry since 1994 and has specialized on client relations and marketing. Having worked with retail clients in asset management and brokerage the first ten years of his career for major European banks, he joined a CTA / Managed Futures fund with 1,5 Billion USD under management where he was responsible for sales, client relations and operations in the BeNeLux and Nordic countries. Kamran joined a multi-family office managing their own fund of hedgefunds with 400 million USD AuM in 2009. Kamran has worked and lived in Vienna, Frankfurt, Amsterdam and Stockholm. Born in 1974, Kamran today again lives in Vienna, Austria.

Latest Articles

Maybe CTA Alpha is Simpler Than You Think: Evidence from the ETF Space

By Andrew Beer, Co-Founder of DBi: Managers of CTA hedge funds and mutual funds often argue that complexity leads to higher alpha generation. After all, why...

Lynx Marches Through March Mayhem

March was defined by a sharp escalation in geopolitical tensions, particularly involving the U.S., Israel, and Iran, creating a highly challenging environment for most investment...

Mixed March for Managed Futures

A sharp escalation in geopolitical tensions set the tone for March, as the US and Israel’s attacks on Iran triggered significant cross-asset volatility. In...

Stop Making Room for Managed Futures

By Corey Hoffstein, Co-Founder, CEO and CIO at Newfound Research: The case for managed futures as a portfolio diversifier is well established. During the...

Othania Positions Trend-Following at the Core of Multi-Asset Portfolios

Not many investors in the Nordics explicitly allocate to trend-following strategies, yet those who do often regard them as an essential building block in...

Muddling Through the Mess: Managed Futures ETFs

By Alexander Mende and Per Ivarsson at RPM Risk & Portfolio Management: Traditionally, Managed Futures (MF) strategies have been limited to hedge funds known...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -