Key Takeaways
- • Jason Teed's Quantified STF fund generated a 75.98% return in 2020, outperforming 99% of peers in its category according to Morningstar data, with the $106.9 million fund employing a fully quantitative, trend-following strategy.
- • The fund's trend-following approach eliminates emotional decision-making by responding mechanically to price movements in the Nasdaq 100 index rather than attempting to predict market direction, positioning the portfolio as long, neutral, or short based on observed trends.
- • Co-portfolio managers Jerry Wagner and Timothy Hanna partnered with Teed to execute the strategy, which targets outperformance of the Nasdaq 100 with reduced downside risk exposure during volatile market conditions such as 2020's pandemic-driven environment.
- • The strategy's core principle centers on market responsiveness over forecasting: the fund monitors whether the Nasdaq 100 is moving up or down in price and adjusts positioning accordingly, avoiding the timing risk inherent in predictive models.
Summary
Jason Teed's quantitative portfolio management approach delivered exceptional results in 2020, a year marked by unprecedented market volatility and uncertainty. Managing the Quantified STF fund alongside co-portfolio managers Jerry Wagner and Timothy Hanna, Teed achieved a 75.98% return for the year, placing the fund in the 99th percentile of its category peers according to Morningstar ratings. The fund, with $106.9 million in assets under management, earned a Morningstar gold rating for its performance.
The fund's success stems from its entirely quantitative, trend-following investment methodology that operates independently of human emotional biases. Unlike discretionary funds subject to investment committee oversight, the Quantified STF fund relies on algorithmic decision-making grounded in mathematical analysis. This approach fundamentally differs from traditional stock-picking or fundamental analysis, instead focusing on observable market price patterns to drive portfolio positioning.
Teed's investment philosophy blends his academic background in philosophy with advanced quantitative expertise, including a master's degree in finance and a chartered financial analyst designation. His approach to trend-following emphasizes market responsiveness over forecasting. Rather than attempting to predict future market movements—a notoriously difficult endeavor given timing uncertainty—the fund monitors price trends in the Nasdaq 100 index and adjusts its positioning accordingly. When the index moves upward, the fund increases long exposure; when it moves downward, the strategy can move to neutral or short positions, thereby capturing gains across multiple market regimes while mitigating downside risk.
The strategy's mechanical nature removes discretionary judgment from portfolio decisions, allowing the fund to respond swiftly to changing market conditions without the delays inherent in committee-based decision-making. This operational structure proved particularly valuable in 2020, when rapid market directional changes required nimble portfolio adjustments. The fund's 76% gain significantly outpaced broader market returns and demonstrates the potential advantages of quantitative, rules-based investing during periods of pronounced market dislocation and elevated volatility.
The fund's success stems from its entirely quantitative, trend-following investment methodology that operates independently of human emotional biases. Unlike discretionary funds subject to investment committee oversight, the Quantified STF fund relies on algorithmic decision-making grounded in mathematical analysis. This approach fundamentally differs from traditional stock-picking or fundamental analysis, instead focusing on observable market price patterns to drive portfolio positioning.
Teed's investment philosophy blends his academic background in philosophy with advanced quantitative expertise, including a master's degree in finance and a chartered financial analyst designation. His approach to trend-following emphasizes market responsiveness over forecasting. Rather than attempting to predict future market movements—a notoriously difficult endeavor given timing uncertainty—the fund monitors price trends in the Nasdaq 100 index and adjusts its positioning accordingly. When the index moves upward, the fund increases long exposure; when it moves downward, the strategy can move to neutral or short positions, thereby capturing gains across multiple market regimes while mitigating downside risk.
The strategy's mechanical nature removes discretionary judgment from portfolio decisions, allowing the fund to respond swiftly to changing market conditions without the delays inherent in committee-based decision-making. This operational structure proved particularly valuable in 2020, when rapid market directional changes required nimble portfolio adjustments. The fund's 76% gain significantly outpaced broader market returns and demonstrates the potential advantages of quantitative, rules-based investing during periods of pronounced market dislocation and elevated volatility.
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