Investment Strategy

Quant-Macro Fusion

The Global Investment Framework

We adopt the “Institution—Cycle—Asset” three-dimensional coordinate system. This framework begins with top-down Macroeconomic Analysis to identify global regime shifts (Institution/Cycle) before determining the optimal exposures across asset classes. We view currency, rates, and volatility as the critical transmission mechanisms between global markets.

The Alpha Engine

Our Alpha is primarily driven by proprietary Multi-Factor Models reinforced by Machine Learning (ML) and Deep Learning (DL). This engine utilizes factor signals related to traditional styles (Value, Quality, Momentum) but expands into behavioral and cross-asset signals (e.g., implied volatility, credit spread transmission) to capture non-linear relationships and institutional switching points.

The Beta Function and Resilience

The Beta component systematically holds strategic, long-term exposures aligned with our cyclical views (e.g., inflation pathways, decarbonization themes). The crucial function of Beta management is Cross-Asset Hedging. This actively manages net risk by balancing exposures across different markets (e.g., hedging an equity theme with a rates position or an FX overlay), ensuring a robust, low-correlation profile.

Strategy Division

Our investment process explicitly separates Alpha generation (driven by factors/ML for selection and pairing) and Beta management (strategic exposure and cross-asset hedging) to ensure clarity, control, and replicability of returns.

Download Our Factor Methodology Brief