Quants
Quants

Quants, a company specializing in risk management and smart beta investing, celebrates a decade and a half of providing innovative financial solutions to investors seeking to navigate market volatility. Over the years, it has helped hedge funds and financial advisors with its sophisticated risk management tools, and is now bringing publicly traded risk-managed funds to retail investors.

"I'm extremely proud of what we've achieved as we celebrate this milestone," says Gokhan Kisacikoglu, founder, CEO, and CIO of Quants. "Fifteen years ago, we solidified our goal to bridge the gap between institutional risk management and individual investors. Today, our solutions have provided stability and security to large funds and empowered a broader audience to obtain the same. We look forward to expanding accessibility further by integrating technology and automation into new investment vehicles."

The Los Angeles-based firm has built a reputation for its expertise in risk modeling, derivative overlays, and portfolio optimization strategies. Leveraging decades of experience in quantitative finance, it has become a trusted partner for institutions, high-net-worth individuals, and fund managers looking for innovative approaches to asset management.

Quants' specialized investment products contribute to its success. Its liquid alternative funds, launched in 2015, integrate derivative overlays to enhance risk-adjusted returns. These overlays are employed in three key areas: portable alpha, risk mitigation, and premium writing. Traditional portfolio diversification strategies usually struggle during extreme market conditions when assets that are typically uncorrelated suddenly move together.

Quants' liquid alternatives mitigate this issue by employing statistical derivative models in volatility arbitrage. These funds track the S&P 500 Index using a combination of long equity positions and derivative strategies to generate alpha while limiting downside exposure, or beta. Because these alternatives adjust exposure based on prevailing volatility conditions, they attract institutional and accredited investors seeking consistent performance across market cycles.

The company has also developed risk and smart beta indices, which serve as the foundation for its broader investment framework. These indices leverage proprietary quantitative algorithms to construct optimized securities portfolios that align with specific investment objectives.

Traditional indices passively track broad market movements. Meanwhile, Quants Risk Indices apply custom derivative overlays to reduce volatility and enhance returns. Institutional investors then receive critical insights for structuring risk-resilient portfolios. The integration of standardized derivatives contracts (e.g., futures and options traded on exchanges like the Chicago Mercantile Exchange and Chicago Board Options Exchange) ensures that Quants' indices can be easily incorporated into various investment products, from hedge fund strategies to structured financial instruments.

With the shift and evolution of the derivative markets, the introduction of new and improved products has opened the door for risk-managed Exchange-Traded Funds (ETFs). Capitalizing on this shift, Quants is introducing a new line of ETFs that streamline risk optimization for institutional and retail investors by bridging the gap between long-term investors and short-term speculators in the derivatives markets.

Implementing derivative overlays usually requires expertise and capital, making these strategies inaccessible to individual investors. Quants Smart Beta ETFs simplify this process by embedding risk management into the fund structure. This allows investors to be exposed to optimized, risk-managed portfolios with the ease of a single trade. Additionally, traditional robo-advisors focusing on passive index investing can utilize Quants' ETFs to both minimize volatility and boost returns.

Quants, committed to innovation, also continues to develop financial technology solutions that can make advanced portfolio optimization more accessible and automated. The firm has invested in building proprietary software platforms that enable real-time risk assessment and automated asset allocation. Quants.com is one of the fruits of this initiative.

Quants.com is an intelligent software-as-a-service (SaaS) B2B platform that customizes investment strategies using quantitative risk analysis. It allows the creation of smart-beta ETFs and dynamically risk-managed products to provide advisors and institutional investors with a seamless way to construct and manage risk-optimized portfolios and mitigate adverse effects of markets.

The impact of Quants' offerings is palpable. Today's markets are becoming more unpredictable, making risk management crucial for long-term investing. However, historically, advanced quantitative strategies were accessible only to large-scale investors. Quants is changing the game by helping investors minimize losses while still capturing market growth with its new ETFs.

As Quants continues to grow, it intends to develop more cutting-edge investment products and financial technology solutions that will further streamline portfolio risk management for investors of all sizes. With this commitment, Quants seems to promise even greater advancements in the coming years.