Quantex Capital Partners (QCP) investment philosophy is based upon a Core and Satellite diversification strategy.


The portfolio core is built upon of diversified low-cost investments. The objective of the portfolio core is to provide cost effective beta exposure to a wide range of asset classes, with the allocation mix determined by the client risk tolerance. The portfolio core seeks to minimize volatility and expense ratios and thereby to provide a solid investment foundation that is resilient during times of market stress and provides acceptable returns during periods of market growth. For the most risk-averse of our clients, we may recommend a Core-Only investment model to minimize the risk exposure and/or the depth of potential drawdowns.


For the investor seeking to add alpha generating value to their portfolio, we offer access to world-class investment managers and fund-of-funds alternatives. Through the aggregated power of our pooled client assets, we can provide access to managers that individual clients may be unable to reach on their own. Additionally, QCP maintains a set of its own proprietary trading strategies that are only available to our own clientele.

Our proprietary trading strategies are a systematic approach that blends long-term trend following, short-term trend following, short-term momentum and mean reversion strategies with an annualized return target of 15-20%. Each strategy is further divided into sub-systems to facilitate smoother entries and exits. We have also implemented filtering techniques in some strategies to avoid trades with adverse risk/reward characteristics. While the filter's goal is to capture profits, its selectiveness allows the system to enter markets only during periods when the risk/reward of a trade is tilted in the trade's favor. It is even possible that if unacceptable risk characteristics exist, the filter could avoid trades with positive profit expectations. The end result is a trading method that has historically provided our investors exceptional returns while maintaining a low correlation to stock and bond investments in their portfolio core.

QCP attributes its exceptional long-term performance to superior research methods. All the models tested are robust with very few degrees of freedom/parameters. Many proprietary statistical techniques are examined, including analyzing multiple time period subsets, market-by-market as well as sector analysis and correlation, risk/reward analyses, parameter degradation studies, slippage analysis, and drawdown analysis. Two independent research teams develop and test systems and then trade projects and cross-check all results using different research platforms.

Many methods commonly accepted by economists, statisticians, and even the CTA community-at-large have major flaws when executed in the real world. This is because the assumptions are valid only in theory. Our trading success comes from original thinking and a refusal to blindly accept statistical models, economic theories, and even "common wisdom" prevailing in the investment industry. QCP uses no assumptions in research that have not been proven through extensive testing and real-time experience. We believe that continuous research is the only viable way to consistently come up with better ideas and better ways to profit in any market condition.