Welcome the Quant Pulse about page. If you’re reading this, you’re interested in using quantitative stock portfolios in your investment arsenal, and hopefully you’re familiar with the basics of this type of investing. The underlying principle is simple: an algorithmic and portfolio approach to picking individual stocks. In other words, a rules-based system that takes both guess-work and emotion out of the picture. For an introduction to quantitative investing read this post here. And here is a post on how to get started with quant investing, if you’d like to try it for yourself.
However if you find doing all this on your own daunting and prefer a guided approach, do read on…
How Does Quant Pulse Work?
Just like Tactical Asset Allocation (TAA) strategies that use a rules-based approach to choosing broad asset classes (e.g. equites, bonds), quantitative stock investing uses an analogous approach for individual stocks.
The rules are based on fundamental stock factors, some of which you may already be familiar with such as value, momentum, company size, quality, profitability, etc. In fact there are hundreds of these factors, which in turn means thousands of potential quantitative systems and methods used for picking individual stocks.
What we do at Quant Pulse is focus this down to a limited number of strategies based on proven factors, and put these together in select number of carefully curated portfolios. In addition we apply apply advanced risk management to them, thus generating better risk-adjusted returns over the long haul.
What Are The Benefits?
The advantages of quantitative investing are significant both in terms of absolute numbers and overall portfolio management. Some of the specific benefits to the investor are:
- Higher absolute returns
- Higher risk-adjusted returns
- Less work
- Less noise. Eliminates many behavioral biases that cause investors to fail.
- Broader diversification
Our approach refines this even further by focusing on select strategies that maximize returns and reduce risks.
We Focus On 12 Specific Strategies
The strategies we focus on are ones that I’ve blogged about for years. Here is a list of these with a link to a post describing each strategy in detail, if you’d like to read more:
- The value composite strategy
- Consumer staples value strategy
- Utilities value strategy
- Enhanced yield strategy
- Trending value strategy
- Large stock index replication strategy
- Mircocap trending value strategy
- Pure Momentum strategy
- Low Volatility Strategy
- The Conservative Formula Strategy
- Greenblatt Value Strategy
- Volatility Curve Model
They are all very powerful strategies based on factors that have stood the test of time like momentum, value, size, quality, and profitability. They have also provided differentiated and persistent returns over long periods of time. There is performance data on some these strategies going back to 1969 from What Works On Wall Street. The Performance statistics since 1999 are shown in the table below, and the stats for the last 10 years show my specific implementations of these strategies.
We Offer A Unique Momentum Overlay
As powerful as these strategies are, it’s not realistic to invest in all of them as an individual. That would be a minimum of about 120 stocks and an overwhelming amount of trading. So how do you choose?
You could choose the top ones that have outperformed over the long term, but even the best strategies suffer form periods of underperformance. The solution for this is a system that we’ve created at Quant Pulse which uses momentum as an overlay to filter out the best strategies. Specifically we pick the top 3 quant strategies to invest in each month based on momentum, thus creating higher overall returns with less drawdowns. The performance data for this approach; Quant Momentum Top 3 is shown below.
We Also Apply Risk Management
To improve risk-adjusted returns we also apply our proprietary risk management system, SPY-COMP that uses economic trends to side-step risky market environments. This significantly reduces draw-downs.
We Curate To Remove The Guess-Work
There are literally thousands of quantitative strategies for stocks out there, and it can be quite overwhelming for investors. The value in Quant Pulse is that I curate and select from many strategies, and only provide a handful of proven ones. In addition we offer a momentum based system to choose which strategies among the proven ones to invest in on a monthly basis. I do all the work of creating, running, and tracking the strategies, so you only have to focus on executing them.
What’s Included In The Subscription
Quant Pulse includes the following features:
The 12 quant stock strategies listed above based on proven factors and tested over many market cycles
A Quant Momentum strategy that eliminates the work of picking which strategies to invest and enhances returns while keeping risk in check
Use of advanced risk management, plus hedging strategies
Monthly updates, monthly subscriber calls, and a member forum to post and answer questions and discuss investment topics with other subscribers
Quant Pulse
- 12 QUANT investment strategies
- Monthly update
- Monthly subscriber call
- Member forums
$40/month
Quant Pulse provides a total solution that allows you to make quant investing a key part of your investment strategy for only $40/mo*. If you’re interested in the benefits of a quantitative approach to stock picking that I described at the outset then Quant Pulse is for you.
*OUR VALUE PROPOSITION: To implement this level of features on your own would cost over $120/month. Even simple, basic, stock screening tools run from $16 to $25/month whereas mid-level platforms cost around $50/month, with no risk management or portfolio construction advice. At Quant Pulse we do all the work for you.
Already an Economic Pulse Newsletter subscriber? If so, you get a DISCOUNT for the Quant Pulse service and pay only $25/mo for this addition (get your Discount Coupon Code from the Econ Pulse Member Home Page)
Not yet a member, but interested in BOTH Econ Pulse (learn more here) and Quant Pulse? Subscribe to the combo for a 20% discount compared to the individual subscriptions.
Combo Price: $60/mo.
