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. 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, TUG-0 was up +16.9% gross of fees.

TUG uses multiple buy and sell quantitative signals to make decisions. Here are a few bullet points…

  • Offered in three versions TUG, TUG-1, TUG-2
  • Using quantitative signals, the strategy can scale into NASDAQ 100 index equity positions
  • May revert to treasury bond positions based on market conditions

Following is the performance chart of TUG (gross of fees) through August 31, 2020:

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, 2020:

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

Additional Strategies

Historically, EA-Sector Growth has been ranked as a top performing strategy in its Morningstar Category for total return over the trailing 5-year period. It was the #1 performing strategy in its peer group for 2018.

Click to View Strategies by Platform

Enhanced Allocation Sector – Enhanced Allocation Sector (EA-Sector) applies our quantitative investment ranking process to a universe of Fidelity sector and fixed income funds. The strategy systematically shifts out of underperforming sectors and into outperforming sectors every 45 days. EA-Sector incorporates our “Market Environment Filter” which is designed to allocate the portfolio to a defensive posture during unfavorable market periods. Our research indicates that the program will be invested in the top-ranked funds approximately 75% of the time and invested entirely in fixed income and money-market funds approximately 25% of the time. The strategy is offered in a conservative, moderate and growth risk profile.

  • Momentum-based sector rotation strategy
  • Fund universe of roughly 40 equity sectors / sub-sectors & 11 bond funds
  • Re-allocation every 45 days
  • Utilizes our “Market Environment Filter” to shift defensive during adverse market conditions
  • Embraces the concept that “there’s always a bull market somewhere”

Trade Report Link

Morningstar Report Link

Bull Cipher – Bull Cipher is a long/neutral strategy that invests in Nasdaq 100 Index Funds. Signals are generated on a daily basis and may be short-term in nature. While the strategy focuses on mean-reversion (counter-trend) based set-ups, trend-following and breakout trades may also be utilized. Bull Cipher is an absolute return program that seeks a positive rate of return over the course of a calendar year regardless of market conditions. The strategy may be positioned heavily in money market funds for periods of time, waiting for high probability opportunities.

  • Bull Cipher would be considered a moderate strategy when used as a stand-alone offering
  • The program is fairly active and maintains the ability to trade multiple times each week
  • Bull Cipher offers a high degree of non-correlation
  • Minimum Strategy Investment - $5,000

Research Report Links

Managed Income Rotation – Managed Income Rotation (MIR) applies Q3's quantitative investment ranking process to a universe of corporate high yield, municipal, and mortgage-backed security bond funds. Each week, the strategy ranks over 40 funds, systematically shifting out of underperforming issues and into those exhibiting relative strength. Our research has shown that these three bond classes historically tend to pay higher dividends and tend to display price persistency - the ability to trend. Within each of the bond sectors monitored we have chosen a wide range of funds from short to long maturities. This adds a second layer of value-add, in that not only does the strategy strive to find the best bond class, it will also look to pick the strongest issues within that class. Additionally, Managed Income Rotation includes several short-term government bond funds which may be utilized during periods of broad bond market weakness.

  • Three distinct bond categories: corporate high yield, municipal, and mortgage-backed
  • The fund universe monitored includes issues that tend to have higher yield when compared to the general bond market
  • The strategy may utilize the relative safety of short-term government bonds if the three primary bond sectors all show signs of weakness
  • Multiple positions held, in equal weighting, with a holding period of at least 30 days

Research Report Link

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

For More Information

Dave Witkowski - Q3 Asset Management

(248) 566-1122 ext. 105