In most strategies, QS utilizes an approach that aims to take advantage of macro and behavioural inefficiencies across global markets, with a philosophy that geography and sector drive risk and return. Certain strategies that QS Investors manage take a more bottom-up perspective. Key features of the firm's approach are:
- Seeks to add excess returns through top down asset allocation rather than stock selection
- Predominantly Long only, top down, macro driven strategy across countries, sectors and currencies
- Selected lower volatility strategies focus on bottom-up driven selection
- Utilises a diversified based approach in an attempt to avoid concentration risk and lessen downside risk.
- Uses analysis of country and sector correlations in an effort to create a highly diversified portfolio
- Risk management is integrated into the portfolio construction process