April 2022 NewsLetter
Management comments
Our investment strategy has three great advantages.
The first advantage is quantitative long/short US equity investing based on active stocks picking. In April the strategy actively traded 14 stocks and 2 ETFs, and, outperformed S&P500 (SPY) and our two benchmarks — HFRI EH Quantitative Directional Index and Eurekahedge North America Long Short Equities Hedge Fund Index.
Absolute return is the second advantage. Somebody may treat the strategy as volatility management. Beta is almost zero, so by saying performance we always mean alpha. The gross return was 1.07% before fees in April.
The third advantage is ability to maintain attractive risk/reward ratio — maximum drawdown was 4.66% happened from 11th to 20th April (peak-to-valley) and then half-way recovered.
Last Month
The 6th April was the best day when daily return reached 3.15%, while the 20th April was the worst day with a single day drawdown of 2.36%.
Year-to-Date (YTD)
The best month was January with 7.84% monthly return (before fees), and the weakest month was April with 1.07% monthly return (before fees).
The full Newsletter can be found here: ARQuant Newsletter 2022-04
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.