“The first quarter of the year was dominated by rising bond yields and a value-led equity market rally. The two key drivers of this performance were the Democratic victory in the US state of Georgia at the start of the year, paving the way for massive further US fiscal stimulus, and the success of the vaccine rollout in the US. The rise in bond yields has been closely correlated with significant outperformance for financials and value stocks. Value stocks are up +9.8% year to date compared with +0.3% for growth stocks.
“The positive performance of VSOP this quarter reflects that our strategies’ tail hedging capabilities through situative long VIX exposure are performing well.” Commenting on the performance, Michael Zeller, CIO
Quantumrock VSOP YTD Performance, as of March 31, 2021
About the Volatility Special Opportunities Program (VSOP)
Quantumrock VSOP is an Equity Tail Hedge strategy. Applying a systematic approach, the strategy’s objective is to predict and capture volatility spikes induced by downturns in equity markets and to (over-) compensate potential losses, while also seeking alpha in bullish market phases.
Quantumrock is an AI-driven investment technology asset manager working to disrupt traditional asset management. Founded in 2012, our aim was to develop a systematic scientific investment process to generate sustainable risk adjusted returns for our proprietary trading activities. Now experts in machine learning and artificial intelligence methodologies, our clients turn to us to provide them with a competitive edge in today’s market.