AlphaQuest, in its latest monthly letter from May, disclosed -1.1% monthly returns. Year-to-date (YTD), the fund’s return is -0.96%. In contrast, the BTOP50 and SG CTA benchmarks returned -1.4% and -1.8%, respectively. AlphaQuest UCITS Fund is an alternative asset manager founded in 2001 by Nigol Koulajian. The cornerstone of its approach is the use of uncorrelated investment strategies that encompass data science, mathematics, and investing.
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What sets apart AlphaQuest’s approach is the reliance on the so-called True Alpha concept. While the alpha generated by most investment managers is cyclical, AlphaQuest’s True Alpha approach aims to deliver decades-long, stable gains.
This is done by focusing on the tail risk blind spots of other managers, benefiting from short-term expansions in volatility and crowding. It also stands to gain from longer-term shifts in the market regime.
The fund’s portfolio is invested in a diverse set of assets, including equities, currencies, and fixed income. To amplify potential gains, it also relies on the use of leverage, which raises the risk of potential losses.
The Assets Under Management (AUM) of the whole company is $2.1 billion, while this fund manages $128.8 million of capital.
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