Q3 can manage participant accounts on many plans near you

Download a List of Plans

About Q3 Asset Management

Q3 Asset Management was founded by professional traders. Our roots trace back to 1982 when our Co-Founder, Brad Giaimo, began his career in the COMEX Gold Pit. In everything we do, we strive to help your clients achieve their financial goals by making our strategies responsive to ever-changing markets and simple to understand. We have deep roots in portfolio management and technical analysis and believe that our background, coupled with our expertise in quantitative investing, gives us an advantage over traditional methods of money management. We seek to participate in rising markets and reduce risk during unfavorable market conditions. Our experience has taught us that active investment management has become increasingly important in delivering an edge.

Featured Strategy - Tactical Unconstrained Growth

The Tactical Unconstrained Growth (TUG) strategy was a top performing fund in its peer group at Morningstar for the 1st quarter of 2020, posting a +5.3% return despite the broader market's -20% pullback. TUG is an absolute return strategy and given its low correlation to both the stock market and other tactical strategies, it could serve as a complement to your current portfolios. YTD through August 31, 2021, TUG was up +14.5% gross of fees.

The strategy is entirely quantitative and relies on several technical indicators to gauge the relative attractiveness of the NASDAQ.

Here are a few bullet points…

  • Daily review; Using quantitative signals TUG can scale into NASDAQ 100 index funds, and can also take positions in long or inverse government bonds or money markets when NASDAQ weakens
  • When interest rates are rising, TUG has the ability to use inverse Treasury positions
  • Low correlation to both equity and bond markets

While primarily a trend-following system, TUG also monitors indicators which seek to identify when the markets have become overextended in either direction. When the system detects weakness in the NASDAQ it will revert to a bond signal which tracks long-term Treasury funds.

Following is the performance chart of TUG (gross of fees) through August 31, 2021:

For additional information, contact Dave at 248-566-1122 extension 105 or dwitkowski@q3tactical.com.

Featured Strategy - SA Sector

SA-Sector is a momentum-based strategy that invests in the top performing sectors and sub-sectors of the market.

Here are a few bullet points…

  • Offered in conservative, moderate and growth risk profiles
  • Select from over 40 different sectors and subsectors – reallocating every 30 days
  • May increase exposure to fixed income during periods of market uncertainty

Sector Rotation – Diversification Works

  • After the powerful market rally in April and May, 2020, equities peaked on June 8th and spent the remainder of the month working off an overbought condition
  • From the June 8th peak to August 18,, the S&P 500 gained 4.9%
  • Over this same time frame, SA Sector Growth advanced 14.3% (gross of fees)
  • The outperformance can be attributed to positions in Gold Miners, Technology and Retail

Our SA Sector strategy continues to perform well. One of the keys to its outperformance has been the ability to diversify across sectors. Often in sector rotation models the holdings can become very concentrated. Sometimes this is for the best, and sometimes not.

Following is the performance chart of SA Sector Moderate (gross of fees) through August 31, 2021:

For additional information, contact Dave at 248-566-1122 extension 105 or dwitkowski@q3tactical.com.

Featured Strategy - Power Momentum

The Power Momentum strategies were developed after many months testing and use an approach unique from all our other models. What makes them different?

  • Focused, stock-based investment strategies that were designed to remain fully invested in the stock market the vast majority of the time.
  • Weekly review - with the intent to “cut losers” and let winners run.
  • Time tested algorithm (25+ years) that emphasizes outsized up-capture.

Performance has been solid since going live in August 2020.

Our momentum-driven approach has been able to identify those names that have shown a propensity to outperform, at least in the short-term. Some examples include West Pharmaceuticals (Rising Dividend), Google (NDX 100) and Target (Blue Chip). The strategies are reviewed weekly, so if a particular stock begins to trend lower, it will be exchanged for one that is showing stronger performance.

  • Power Momentum is offered in three versions – Blue Chip, NDX 100, and Rising Dividend
  • Performance over short-term horizons (under 3 months) may deviate from benchmarks due to the focused nature of the strategies.
  • PM-Blend, which consists of an equal weighted mix of all three versions of the strategy, is a recommended way to dampen the volatility of the individual Power Momentum strategies.

Power Momentum holdings, as well as being reasonably diversified, are also distributed across the growth/value spectrum as equity markets have been bouncing back and forth between the two for most of 2021.

Power Momentum One Page Overview

For additional information, contact Dave at 248-566-1122 extension 105 or dwitkowski@q3tactical.com.

All-Weather Funds

All-Weather Sector Rotation Fund – The Fund seeks long-term capital appreciation by applying the Adviser’s quantitative investment ranking process to a universe of sector, subsector, and fixed income issues. By systematically shifting out of underperforming investments and into outperforming investments, the Adviser attempts to adapt to changing market conditions. The Q3 All-Weather Sector Rotation Fund maintains the ability to overweight fixed income positions when equity markets display signs of weakness.

View All-Weather Fund Positions

All-Weather Tactical Fund – The Fund attempts to take advantage of both bull and bear markets by tactically allocating between strategic equity and fixed income positions. Looking to capitalize on the non-correlation between equities and bonds, the Fund attempts to assess which asset class will provide the best opportunity in light of prevailing market conditions. When the equity markets become indecisive, the All-Weather Tactical Fund may rotate into bonds in an effort to take advantage of either rising or falling interest rates.

View All-Weather Fund Positions

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    Disclosure: Hypothetical performance results are derived from the benefit of hindsight and therefore have certain inherent limitations. Unlike an actual performance record, simulated trades do not represent actual trading. Also, since the trades have not actually been executed, the results may have over or under compensated for the impact, if any, of certain market factors such as lack of liquidity. Strategies were not necessarily available to invest in for the periods presented. Hypothetical testing does not involve financial risk and therefore may not necessarily depict an investor’s ability to tolerate such risks. The hypothetical data assumes full investment in the strategy; however, accounts managed by Q3 could maintain a small cash position. Had the hypothetical data included a cash position, the results would have been different and in general would have been lower. Results shown are inclusive of advisory fees of 0.65% and assume the account is held at E*TRADE Advisor Services. Fees of anything less than Q3’s maximum of 2.25% may not reflect the impact that fees have on the compounding effect of returns. Hypothetical performance data for many strategies includes “model account performance.” Additional fees may apply on other platforms and may impact performance negatively. Trade signals and performance results for other platforms may vary based on a number of factors including order entry cut-off requirements. These results do NOT necessarily represent actual trading or client experience, and do not necessarily reflect the impact of decision making or economic or market factors experienced during the actual management of funds. The actual return may be lower or higher than the performance quoted. Annual returns are compounded monthly. Performance between selected dates may be misleading and may not be able to be achieved in the future based upon changing market conditions. Benchmark data is obtained through Morningstar and reflect the reinvestment of dividends. Results do not predict the performance of the investment strategy. Model account performance data begins with the first full month of available data (partial months are not included).