What We Do
Many so-called alternative investments can often exhibit much of the same characteristics as a traditional portfolio, particularly during periods of market crises; therefore, it is important to consider other non-correlated sources of risk in a portfolio that can provide true diversification when it’s needed most, and not just by name. First Quadrant’s diversifying return solutions seek to provide long-term positive returns regardless of market direction and are designed to be truly uncorrelated to an investor’s portfolio, not simply provide an “excess return”.

Rooted in over a 30-year history and evolution of global asset allocation, First Quadrant’s gtaa and macro solutions are designed to tactically and dynamically allocate risk between different assets, factors and ideas to take advantage of opportunities when there is the greatest probability for gains. Our macro strategies invest globally in multiple independent categories that span a wide variety of assets and strategies, including stocks, bonds, currencies, commodities, options, managed futures, risk factors and risk premia.

Macro FX

First Quadrant’s macro-oriented currency strategy makes diversified investments in developed market currencies using the most liquid instruments in the world. The process is fundamentally based and exploits the drivers of relative value of currency markets while taking advantage of influences of both short-term and long-term capital flows, trade flows and supply/demand pressures. The process is designed to deliver positive returns over a full market cycle, provide non-correlation to other investments, and deliver diversification when needed most.

Commodities long/short

Commodities are a truly unique asset class. In a long-only context, they are notable for their diversifying effect on more conventional portfolios of stocks and bonds, as well as for hedging unexpected inflation and providing exposure to global growth. In a long/short context, they also attract varied market participants, from financial speculators to informed commercial traders, creating many opportunities for persistent market inefficiencies. Using a diverse set of fundamental drivers, First Quadrant’s approach to commodities seeks to capture these inefficiencies systematically in liquid futures markets using a long/short or long-biased framework, depending on client goals.

Past performance is no guarantee of future results. Potential for profits is accompanied by possibility of loss. Commodities trading involves substantial risk of loss.

Please contact us to see how our diversifying return solutions can help meet your specific needs.