To achieve its objective of increasing the value of long-term positions with a lower volatility than the underlying, our management process combines algorithmic management and discretionary monitoring.
Arquant Capital’s DNA is quantitative management. Since January 2020, we have developed and put into production our own algorithmic models, adapted to the specificities of digital assets, allowing us to capture trends, with the aim of enhancing capital and protecting it during correction phases.
Following robustness tests, the signal generation models are validated by the R&D committee and risk management before being implemented.
The R&D team works closely with management to identify and test new biases and indicators to improve the quantitative models.
Quantitative monitoring is not limited to the main cryptocurrencies, Bitcoin and Ethereum, but to all digital assets in a dual sector and token picking approach. Currently, our models track nearly 3,500 tokens across all sectors to detect new trends. We have internal databases allowing us a strong analytical and operational independence.
Teamwork is the key to successful management. The investment committee, composed of managers, blockchain experts and experienced market professionals, defines the macroeconomic environment. Its decisions are used to steer the portfolio and mandates level of exposure as well as the quantitative management model to be activated. The committee uses internally developed market monitoring tools based on a selection of “On Chain” and “Off Chain” data. The managers execute the committee’s decisions, but also have tactical leeway to increase management agility.
Any Blockchain project followed is analyzed in detail and documented in internal studies updated on a semi-annual basis by the managers and sector specialists. The committee members continuously monitor the market, sectors and new trends.
This unique combination of algorithmic management and discretionary steering has proven its effectiveness, particularly during market corrections, such as 2022, where our strategies have significantly outperformed the market while creating value for our clients.