QuantDesk® Portfolio Hedge Finder

Neutralize Volatility and Protect Against the Unexpected

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Reduce Downside Risk

Introduce anti-correlated securities with Lucena’s Hedge-Finding Algorithm

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Preserve Return

Hedging doesn’t have to come at the cost of total return

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Utilize Hedge Bias

Our hedging algorithm allows the user to introduce positive or negative bias

Solutions

Price Forecaster

Portfolio Optimizer

HedgeFinder

Event Analyzer

Back Tester

Reduce Volatility & Risk

Would you like to reduce the risk in your core portfolio? Use our Hedge Finder to discover equities to add to your portfolio that will reduce its downside risk and volatility.

Price Forecaster has access to a broad set of data and is built using powerful algorithms
  • What portion of the portfolio should be used for a hedge? This is often 50%, but effective hedges can also be built using smaller proportions
  • How many equities in the basket? Smaller baskets are easier to build with fewer transactions. Larger baskets provide more precise hedges
  • Long only? Some investors prefer to avoid short positions. No problem. We can build long only hedges too
  • Which equities? Our software can screen all actively traded equities to find the best hedge. We can also “black list” specific equities at your direction to remove them from consideration

Hedging Improves Portfolio Performance

Hedging allows you to spend more time building your core portfolio and less time worrying

  • Reduced downside risk: This is of course the primary objective for a hedger
  • Preserve return: Hedging often comes at the cost of lower total return. Our hedging algorithm includes specific equity selection steps designed to preserve total return

Our Hedge Finder uses a unique algorithmic approach

  • Data: 7000 North American equities including: NYSE, NYSE ARCA, NASDAQ, AMEX, OTC (stocks, ETFs, ADRs). Over 100 indices, including major indices published by Dow Jones and S&P
  • Lucena now supports International Equities
  • Core algorithm: Our hedging algorithm is proprietary. It allows for short, long/short, and long only hedge baskets
  • Target beta: The target beta, or “responsiveness” of the hedge can be tuned by the client. This allows a hedge to be built using a lower proportion of the portfolio
  • Whitelist: Specify the universe of equities to consider for the hedge
  • Blacklist: Specify individual equities to exclude