Stars don‘t need stripes
Would you like to have access to European equities without being restricted to a concentrated long-only strategy? Our Active Extension strategy offers you a diversified long/short portfolio that allows you to benefit from both rising and falling prices. Active Extension Europe combines Quoniam‘s science-based research forecasts for over 3,000 European stocks with risk-managed, systematic portfolio construction techniques.
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Proven performance
Over the past three years, as of September 2024, our strategy consistently ranks in the top quartile among peers in the eVestment database. This achievement comes with a moderate tracking error and top decile information ratio. -
Real alpha
Our portfolio is carefully managed to maintain a beta close to 1, ensuring that the returns are derived solely from alpha. This characteristic makes it an ideal core holding and a valuable tool for enhancing overall portfolio diversification. -
Capturing downside views
Downside views are implemented less often, leading to market inefficiencies. Our long/short strategy aims to exploit these with a risk controlled 130/30 approach. -
Strength in numbers
With a portfolio comprising over 300 positions, our approach effectively mitigates risks and opens up a breadth of diversifying investment opportunities.
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At the heart of our investment approach is our risk / return forecasting engine, based on scientifically derived models that are continuously refined by our research team. Our systematic process consistently and objectively evaluates all stocks in the universe each day. Value, quality and sentiment factors have emerged from our many years of research as statistically and economically significant indicators of future excess returns. However, while these factors seem straightforward, we have identified a carefully curated set of 60 underlying metrics, supplemented by machine learning, that consistently enhance returns.
Additional return through factor investing
- Value, quality and sentiment factors have emerged from our many years of research as statistically and economically significant indicators of future excess returns.
- The factors form the basis of our forecasts and are summarised in a combined forecast signal for each stock.
- The signal has proven to work well on both the long and short side, thus increasing return potential.
Dr Lisa Herr, CFA, has been a fund manager for European equity strategies since February 2016. Prior to joining Quoniam, she worked as a research assistant at GSI in Darmstadt and as a consultant. Lisa holds a bachelor’s and master’s degree in physics from the Johann Wolfgang Goethe University. She received her doctorate in Physics from the Technical University of Darmstadt. Lisa was once again awarded as ‘Best Fund Manager’ for Quoniam’s European equity strategy by the Handelsblatt Research Institute. The strategy also ranks in the top 10% of the Absolut|ranking within the peer group ‘European Equities’ (ISIN: LU1120174377, as of 03/2025).
Your added value
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More alpha with market beta:
Many long-only approaches seek to generate higher returns by overweighting higher beta names. Our strategy is beta 1, which means that any sources of outperformance are from our model’s systematic forecasts and not adding additional beta risk. -
Greater diversification:
In a long-only portfolio, increasing outperformance opportunities often lead to increasing portfolio concentration and greater risk. Our diversified active extension approach has a significantly higher number of active positions than equivalent long-only strategies. -
Strong track record:
The strategy has delivered top decile performance since inception, with an outstanding information ratio, moderate risk and competitive fees, offering a better way of investing in European equities.
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insights
Get in touch with Quoniam, and let’s discuss your investment goals and how to achieve them. Contact us for an analysis of the best strategy for you.