Archea GlobIQ is a diversified long-only investment fund, which globally invest in equity and fixed income instruments, and which uses quantitative risk management techniques in order to optimize returns and avoid major draw-downs. The fund invest in the most liquid and well-known global stocks, bond market and money market indices as represented by their Exchange Traded Funds (ETFs). The fund uses quantitative risk management techniques, based on strategic Bayesian Decision making, Fama’s Efficient Market Hypothesis and portfolio theory as well as Markowitz’s modern portfolio theory and growth optimal portfolio strategy.
The fund is built out of the ETF selection of the equity indices, which are taken the set of major global market indices supplied by index providers MSCI, FTSE, DowJones or country indices like DAX, CAC40, S&P500, TOPIX where return drawn from the indices and currencies. Diversification, across the globe and sectors, is the core to the fund which has been implemented by using special de-risking techniques for constituents of the portfolio. Putting together the portfolio out of the most liquid ETFs of the major global indices, gives the fund great advantage of high transparency and high tradability, which leads to fast reallocation in case of event risks.
The fund analysis continuously its value at risk and applies statistical quality control by using not only market indicators but also fundamental indicators, which is provided by GlobIQ S.A. research, to manage downside risks by either putting in place levels of stop-losses for the equity investments, or by replacing equity investments partially or entirely by components of carefully selected EU and U.S. government bond ETFs. There is an overall FX hedging component for the entire fund. Not least, these techniques are applied to weight and select among different equity investment strategies aimed for an improved performance of the portfolio.
