Markets are driven by data, but also by emotion, or sentiment. There is an opportunity to identify and act on shifts in sentiment before they are fully reflected in prices. Over the last decade, we have developed systems to understand current sentiment and invest in the opportunities that arise.
Introducing the Quoniam Global Data Sentiment strategy
Quoniam Global Data Sentiment is a liquid long/short strategy that identifies and acts on market-moving shifts in sentiment before they are priced in by analysing unstructured news flow to identify key investment signals.
Alternative alpha
The use of unstructured data to generate signals for a sentiment strategy offers investors the opportunity for alternative alpha: Our strategy aims to identify market sentiment as early and reliably as possible and to use our head start for positioning.
True diversification
By using our proactive sentiment strategy, you can achieve a higher diversification of your portfolio – thanks to low or negative correlations to traditional asset classes and hedge funds.
Capturing insights before the market: What is sentiment and how to leverage it?
- Sentiment captures emotions
Sentiment not only incorporates all available fundamental and technical information, but also reflects emotions such as optimism or pessimism. - Faster to market
Alternative data reflects market sentiment as it happens, allowing earlier positioning in the markets. - Signals from noise
Best-in-class global databases and our unique machine learning approach generate a broad range of relevant trading signals in near real time. - Only liquid markets and instruments
Trading only in liquid markets using futures and forwards enables us to achieve a high level of speed and minimise trading costs.
OUR APPROACH
Combining big data portfolio management skills
with best-in-class systematic research
OUR PROCESS
Maximising our information advantage
Capture
- Expert due diligence identifies the most reliable news sources.
- >1 million stories are reduced down to around 50,000 daily
Refinement
- Machine learning tools filter the stories down to 1,000 of topics.
- Around 100 topics converted into signals.
Signals
- Models tag articles to country, asset class and currency categories to provide a signal.
Implementation
- Signals are assessed daily and implemented twice weekly.
- Position outcomes are realised rapidly and exited efficiently.
Our edges
Adding value every step of the way
-
1. Input
After thorough analysis, we have chosen reliable sentiment data providers and continuously monitor additional sources for valuable insights. Our focus on high-quality data keeps us ahead in the market sentiment landscape.
-
2. Identification
Our researchers and data scientists identify key news topics that influence market movements. Using our machine learning system, we refine over a million daily news items into actionable signals. We capture macro events and expert insights on significant business developments, enabling us to anticipate trends faster than traditional data sources.
-
3. Implementation
We implement our positions before sentiment impacts market prices, finding the optimal execution point for balancing returns and costs. While others analyse, we have already acted. Whether it is a positive or negative position, we have a proven hit rate in getting it right.
Key features
-
-
A low correlation with traditional asset classes and hedge fund strategies. -
A three-year real-money track record for the underlying strategy, supported by simulated data since 2015 showing attractive levels of risk-adjusted absolute performance.
-
Investing in the most liquid global equity, bond and currency markets to allow fast implementation of our signals at a low cost.
-
MUTUAL FUNDS
Here you can find further information on Quoniam’s approach to “sustainability risks” and “adverse sustainability impacts”.
DISCLAIMER
Detailed product-specific information and notes on opportunities and risks as well as the sales and paying agents can be found in English on union-investment.lu under the heading “Downloads“.
QFS-SICAV (Quoniam Funds Selection SICAV)
Management company: Union Investment Luxembourg S.A.
Portfolio management: Quoniam Asset Management GmbH
Interested?
Get in touch with me.
We would be happy to talk to you about your investment goals and their implementation. Contact me and we will analyse, without obligation, which strategy is the most suitable for you.
Contact
Jorre Willemse
