The Q3 management approach is based on quantitative research – not emotions. We never attempt to forecast the future. Instead, we recognize and react to what’s happening in the market today. By taking a systematic, objective approach, we remove personal bias, opinion, and ego from the investing process and allow our proven systems to seek the strongest opportunities.
What does Q3 do?
Q3’s models are designed to meet a wide range of investment goals. While limiting downside volatility is a focal point of each strategy, we strive to offer a diverse blend of complimentary programs that each bring something different to a successful portfolio. We employ a comprehensive research and development process to create effective portfolios designed to perform well in various market environments.
Strategy Development
The process starts by identifying a need. We review our existing strategies to determine how they perform in various markets; then identify periods where a new approach might complement our existing offerings. Next, we examine the ideal style for the market condition we are seeking to perform well in. For example, mean-reversion strategies tend to perform best in volatile markets while momentum strategies do best in trending markets. We then develop rules for the strategy based on our belief that behind every successful investment strategy there are written, measurable and repeatable rules. Finally, walk-forward testing (using real data) is employed to confirm our expectations.
Performance Measurement
Accurately assessing performance requires discipline and a long-term focus. Objectively understanding the quality and effectiveness of an investment strategy requires a detailed analysis of the sources of returns. Not all investment strategies should be compared to one another, and it’s important to use appropriate benchmarks. Information about the strengths and weakness of a program are used to build expectations about their potential return behavior during various market environments. Analyzing performance within the context of these expectations is a major component of our research process.
Risk Assessment
A thorough analysis of investment risk is of primary importance in the evaluation of a strategy’s overall performance. In assessing this risk, we are careful to consider the market environment. Correlation, semi-standard deviation, maximum drawdown and maximum recovery time are all integral components of our risk assessment process.
Portfolio Integration
Experience has shown us that no single investment approach is effective in every market environment. Our objective is to construct a portfolio of strategies that diversifies across investment methodology, asset class exposure, time frame, and reallocation frequency. Through non-correlation each strategy is designed to add value in a complementary way.
Continuous Refinement
Our research process requires ongoing investigation and evaluation in order to confirm the factors that contributed to a strategy’s past success are still effective. Once a strategy is in place, we continuously monitor performance and risk to make sure our core objectives and expectations are being met. This allows us to improve our methodologies and enhance the potential for long-term success.
Q3 offers a suite of managed strategies designed to help individuals achieve their investment goals. We believe advisors play a vital role in helping investors reach their goals. Each of our strategies have varying primary objectives but all have an equal emphasis on one of the most important aspects of successful investing – minimizing losses. Q3's risk management services are available for most account types including non-qualified accounts, IRA or Roth IRA accounts, or Trust accounts.
A qualified retirement plan account is often an individual’s largest asset. However, many investors don't have the knowledge, emotional discipline, or time needed to manage it effectively. Q3 Asset Management attempts to eliminate these barriers to prudent investment management by working with financial advisors, third party administrators (TPA's), and record keepers to offer actively-managed portfolios for participants in 401(k), 403(b), and 457 accounts.
Q3’s retirement plan management program is available through investment professionals.
