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ADAPTIVE
MANAGEMENT
Old investment approaches based on "BUY AND HOLD" and the "EFFICIENT FRONTIER" may not work as well in our globally connected dynamic markets. The frequency of unforeseen events and high-frequency computer-driven markets have increased the importance of adaptive management focused on risk.
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Systematic Investment Strategies Providing Adaptive Asset Management With Downside Risk Protection
ADAPTIVE RISK
ALLOCATION PORTFOLIO MANAGEMENT
Have us manage your total portfolio utilizing our different quant models with an adaptive risk allocation overlay specific to your goals and risk tolerance.
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SYSTEMATIC QUANT MODELS
Select from our many systematic equity and ETF based quant models that are both strategic and tactical to target specific markets, asset classes, styles, and sectors
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QUANTITATIVE DEVELOPMENT AND RESEARCH
Let us research investment ideas for you or custom develop models to target specific risk/reward profile in asset classes, styles or markets
ABOUT US
QuantStrat, a division of Live Oak Wealth Advisory Group, LLC, a registered investment adviser with the SEC, is based in Houston, Texas. The result of the merger of two established quantitative asset managers, QuantStrat offers a diverse range of strategies designed to meet the evolving needs of global investors.
Since the development of our first fixed income model in 1992 and the introduction of our equity and ETF models in 2010, our mission has remained clear: to deliver consistent, steady returns while protecting against downside losses. We focus on providing uncorrelated absolute returns, ensuring that our strategies perform independently from traditional equity and bond markets.
At QuantStrat, we believe in the power of systematic, quantitative models to guide investment decisions. By eliminating human biases, we help investors navigate the markets with confidence, while prioritizing protection without sacrificing performance.
We set out to develop investment strategies that understood risk from an investors point of view. They may not understand what volatility means but they definitely understand losses in their portfolio.
OUR STRATEGIES
We have developed a robust set of quantitative investing strategies aimed at limiting the downside risk while maximizing the upside potential regardless of market direction. These strategies can be utilized to build fully-customized portfolio solutions or to fill gaps in an existing portfolio. When it comes to achieving your specific goals, we will consult with you to develop a tailor-made portfolio featuring our adaptive risk management overlay. All of these strategies are designed to be fully quantitative, to limit the human bias from investing.
Long-Short Equity ETF Strategy
Long-Short Equity ETF Strategy
A long/short mathematically driven alpha strategy capturing mean-reversion and trend. Runs across 190 global ETFs with an average holding of 70 positions for 9.5 days. 18 proprietary algorithms identify positions allowing it to perform in up, down or sideways markets. Proprietary risk algorithm controls position sizing. Annualized volatility target of 14%.
Adaptive Sector ETF Strategy
Adaptive Sector ETF Strategy
Tactically invest in US sector ETFs or treasury ETFs while aiming to limit downside risk with our updated machine learning risk management algorithm. Proprietary relative strength algorithm identifies top four sectors to invest in. Risk management algorithm determines overall equity exposure. Higher turnover strategy with an annualized volatility target of 14%.
OUR TEAM
Our team has over 100 years of combined investment management experience with backgrounds in economics, financial and retirement planning, investment management, mathematics, computer programming, and quantitative finance.
Hugo Castalan
Head of Quantitative Research
Mr. Castalan leads quantitative research for QuantStrat Investments. Mr. Castalan specializes in the development of algorithmic quantitative analysis systems for trading equities and alternative assets. Mr. Castalan was instrumental in improving the algorithms utilized by QuantStrat through machine-learning techniques. Mr. Castalan co-led the quantitative research team and co-founded Aimvest Technologies Inc., a company that started at MIT. Mr. Castalan has built machine-learning-based strategies using natural language processing techniques and deep learning models for QuantStrat, AimVest, and various hedge funds. Hugo is an MIT Master of Finance graduate, Dean’s Scholarship recipient, and holds a bachelor’s degree in Finance from Baruch College.
Hugo Castalan
Head of Quantitative Research
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Michael Robertson
Business Development
Mr. Robertson has over 15 years’ experience in financial services as both a high-frequency equity trader and selling investment products. During his career, Michael has also worked with several quantitative funds to develop proprietary trading platforms and assisted with the distribution of those funds. Mr. Robertson attended Northwood University.
Michael Robertson
Business Development
WHAT MAKES US DIFFERENT
It is really quite simple. The preservation of capital is the most important investment objective. The development of each quantitative model always begins with the management of risk. If we can limit the losses, then we will spend more time accumulating gains instead of making up for losses. Only when the risk vs. reward ratio is in our favor, do we seek capital gains. Our philosophy is simple to achieve, but it required a new way of measuring risk vs. reward and how it should be applied to portfolio management. While the math behind our algorithms is complicated, the overall strategy is always simple.
Removing human bias from the investment-making decision process through a systematic quantitative approach is one of the most significant improvements in successful investment outcomes.
OUR TEAM
Our team has over 100 years of combined investment management experience with backgrounds in economics, financial and retirement planning, investment management, mathematics, computer programming, and quantitative finance.
Mr. Robertson has over 15 years’ experience in financial services as both a high-frequency equity trader and selling investment products.
Michael Robertson
Business Development