March 2025 NewsLetter
Management comments
March presented a challenging environment for our investment strategy; nonetheless, it closed the month with a positive outcome of +1.50% before fees.
This month, we implemented an important improvement to the trading system, enhancing its ability to adapt more rapidly to changes in market volatility. The system can now adjust intraday following significant movements, which improves its ability to manage risk in fast-moving, unpredictable market conditions.
This upgrade proved especially valuable in March, helping the strategy avoid substantial losses during a period of heightened instability. There was a notable increase in both gross and net exposure around the 24th of March, followed by a sharp contraction. This pattern suggests that the strategy sought to capitalize on market momentum but quickly scaled back risk after capturing gains.
The strategy outperformed its new benchmark, which recorded a -1.73% loss for the month (an equal-weighted basket of actively managed long/short US equity ETFs: CLSE, FFLS, and LBAY).
Last Month
On March 10th, the strategy recorded its highest daily return of 2.31% gross. But the next day, March 11th marked the worst day, with a daily loss of -1.51% before fees.
YTD
February recorded the highest gross monthly return at 6.96%, while January was the lowest with a negative return of -1.44% gross.
The full Newsletter can be found here: ARQuant Newsletter 2025-03
Warning: Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations. Currency rates may fluctuate significantly over short periods of time and may reduce the returns of a portfolio. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss. There is no guarantee that these investment strategies will work under all market conditions and each investor should evaluate their ability to invest for a long-term especially during periods of flat market or downturn in the market.