Author: Amin Khakiani, Focal Point Management
Models: Quantitative Hedging and Quantitative Broad Index
Focal Point Management is a California-based SEC registered investment advisor was founded by Amin Khakiani. Amin has a background in engineering and mathematics and 11 years of corporate finance and strategic planning experience. Its Quantitative Hedging model is a
concentrated quantitative model which takes an adaptive, rotational approach to investing in different market indices and sectors.
Its Quantitative Broad Index
takes an adaptive, quantitatively based, tactically driven approach to invest in broad-based market indices, with the goal of participating in up markets and minimizing risk during down swings.
Amin had this to say about the models’ performance in March:
March saw a continuing rally in the broad financial markets, along with a continued decline in volatility. Our portfolios stayed on the long side. A low volatility environment makes tactical counter-move positioning difficult, and our portfolios will be bullishly positioned until the volatility environment changes.
Our rotational strategies primarily kept us in Nasdaq 100 (NASDAQ: QQQ), although we also found some opportunistic opportunities in small cap (NYSE: IWM) and large cap (NYSE: SPY) indices.
Key to our outlook going forward will be institutional participation (institutions have been mostly net buyers of stock since the Fall), continued low volatility, continued improvement in the economy, and corporate visibility into future earnings.
