First Quadrant (FQ) is an innovative investment management boutique recognized for excellence in dynamic asset allocation and equity strategies. FQ employs a systematic, theory-based investment process and serves a global, primarily institutional client base.
The Fund seeks to maximize total return by investing in a diversified, risk-balanced global market portfolio with exposure to global equities, sovereign debt, inflation-protected securities and commodities.View Fund Details
The Fund seeks to achieve long-term after-tax returns by gaining exposure to U.S. stocks.View Fund Details
The Fund seeks long-term capital appreciation by gaining long and short exposure to stocks of U.S. companies.View Fund Details
First Quadrant (FQ) believes its edge is derived from a focus on macro phenomena, the drivers of return and careful examination of risk. FQ seeks to gain an investment edge by applying a systematic approach to the kind of fundamental and economic insights sought out by fundamental investors.
FQ adheres to three key investment principles:
Focus on the forests and the trees.
First Quadrant (FQ) looks at the world first through a macro lens, and then sweats the details to make sure the best and right trees are selected to capture macro opportunities.
Look at all types of drivers of return.
Like other investors, FQ pays close attention to fundamental characteristics—both known and forecasted—but it doesn't stop there. The firm believes asset prices don’t simply move based on fundamentals, but also based on shifts in investor preferences for those assets. These shifts in investor preferences are precisely what technical models intend to capture—but without insight and after the fact. The goal is to identify underlying drivers in order to anticipate changes in investor behavior in a way that few do.
Risk management plays a key role in both offense and defense.
FQ understands that risk is what investors are being paid to bear and strives to understand and avoid those risks that are uncompensated, in exchange for those risks that provide real opportunity. First Quadrant then layers on an entirely independent view of risk—independent of FQ's own process, data and investment team—that further challenges its thinking about risk.