Quality Capital Management
 | |
| Private | |
| Industry | Hedge fund |
| Founded | December 1995 |
| Founder | Aref Karim |
| Headquarters | 3 The Heights. Brooklands, Weybridge, Surrey, England, KT13 0NY |
Number of locations | 1 |
Area served | Worldwide |
Key people | Aref Karim (CEO & CIO) |
| Products | Global Diversified Programme, Alpha Financials Programme, Commodity Directional Programme |
| Website |
www |
Quality Capital Management Ltd (often abbreviated as QCM) is a UK-based hedge fund specialising in managed futures. The company was founded by Aref Karim in 1995 and its headquarters is based in Weybridge, Elmbridge, Surrey, England.
History
Founded in 1995, QCM is a UK-based investment manager offering sophisticated Systematic Global Macro portfolio solutions to investors around the globe. The firm is regulated by the UK Financial Conduct Authority (FCA) and registered in the US with the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA).
Prior to setting up QCM, Aref Karim, the founder and the Company’s CEO & CIO, spent thirteen years at one of the world’s largest sovereign wealth funds, Abu Dhabi Investment Authority (ADIA). While at this institution, Aref designed and managed a multi-billion dollar portfolio of alternative investments. This was a pioneering foray into alternative investing for a sovereign institution.
QCM dedicates its efforts to developing innovative and differentiated liquid portfolios for investors. The firm’s objective is to create investor wealth by generating long-run absolute and lowly correlated returns through liquid financial and commodity markets. A diversified long/short strategy, developed and enhanced over twenty years of research, is applied to wide-ranging regulated markets that are listed on most major exchanges. Client portfolios not only have the safety of participating in regulated global exchanges, but they incur low transaction costs and offer high liquidity by using futures. The QCM investment process is packaged and executed through a disciplined and mathematically formulated set of models that are run systematically with no emotional biases.
QCM has an institutional-class operating platform of governance, compliance and risk management that delivers top quality business security to its investors. We have invested a significant amount in state of the art technology over our history, striving to stay ahead of the curve at all times. A full scale disaster recovery site is located a short distance from our offices. Our solid team of qualified and experienced professionals enables the company to be at the forefront of research and innovation, carrying with it a solid organisational culture with strong values.
Focusing on a high quality personalized service to investors takes us one step further: working with investors to customise solutions for their specific needs.
Products
QCM’s core investment strategy can be accessed through three distinct product offerings: the flagship Global Diversified Programme (‘GDP’), the Alpha Financials Programme (‘AFP’), and the Commodity Directional Programme (‘CDP’). The products trade different liquid exchange-traded futures, each offering unique properties for portfolio diversification. In addition, we take great pleasure in partnering with investors and customising innovative liquid solutions to meet their investment objectives.
Approach
QCM invests in liquid, exchange-traded futures markets. These can handle capacity offering low transactions costs; they also offer transparency and comfort of regulation. QCM applies a generic investment strategy that is ported into different products with nuanced variations to allow for the subtleties of asset classes traded in the portfolio. QCM products carry the following essentials.
- QCM products look to create long run wealth for investors through a stream of non-correlated long/short generated absolute returns. A client either invests in a QCM product or can create a customised basket to cover specific market sectors or asset classes. A product largely utilises QCM’s generic investment strategy which is then subtly varied to suit the needs and characteristics of each portfolio and its objectives.
- The investment process applied to generate wealth is constructed with sound economic rationale and fundamental logic that cannot be easily arbitraged. QCM applies thoroughly researched and robust inputs across all products. The portfolio is usually synergistic, with the sum of the parts being greater than the whole. Trading is long/short to take advantage of rising and falling markets. The market coverage is diversified within the realms of liquidity, dictated by the product choice.
- QCM applies a rules-based trading approach to ensure consistency and discipline and executes through a systematic computer-driven construct, free of emotional biases. Robustness and longevity are primary considerations, with the strategy using few variables and avoiding both backward ‘fitting’ and data mining.
- Risk/asset allocation in the QCM strategy is dynamic and bears more importance in generating alpha than market timing through technical indicators. The major part of a product’s returns come from the portfolio and its position changes rather than from individual markets.
- A product is actively risk managed at portfolio, sector and individual market level to cover short term as well as long run risk in investing. Advanced Value at Risk (VAR) and other proprietary risk management techniques are used in QCM products and these have been further upgraded in early 2016.
See also
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