Investment Overview
Strategy Description
Quanterra is a systematically-driven market-neutral fund which deploys investment strategies based on four main principles:
asset volatilities will revert to their mean; risk premia pricing in the derivative markets increases with time; investors required
rate of return increases in an exponential function with increasing risk; and that asset prices should be consistent across all
capital and derivative markets. The Fund currently implements three uncorrelated strategies utilizing these principles within
the US markets to generate high returns with limited downside: (1) a Stat Arb strategy focused on exploiting historical and
statistically reoccurring inefficiencies between correlated securities; (2) a Volatility strategy focused on generating profits from
the term structure of risk premia in the volatility derivative markets combined with a Hedging strategy focused on capturing
high returns during times of market stress; and (3) an Income strategy designed to provide stable returns by collecting stock-loan rebates from hard-to-borrow equities and the differences between implied and actual dividends.
