Quadriga Aqua UCITS focuses on:
- Capital preservation.
- High returns in the long term.
- Moderate volatility
These objectives are achieved through the process of rebalancing between two completely uncorrelated strategies: S&P 500 and Quadriga Igneo UCITS.
On the defensive side, antibubble strategies assure positive returns in the case that market collapses. Whilst on the offensive side, returns on the S&P 500 are constantly captured on the way up. There is certain leverage in the strategy that allows for weights of 80% invested in Igneo and 80% in S&P 500 futures. Furthermore, a key element of the strategy lies in the action of rebalancing monthly so that the weights are always 80% / 80%. This way, you assure that you are buying cheap and selling expensive.
Factsheet Aqua – August 2023
Monthly Factsheets
What happened during the month?
Quadriga Aqua UCITS is -1,1% in August. During August we saw a correction of the previous two month rallies in developed market equities with SPX -1,59% and SXXP -2,51%, emerging markets found a deeper correction (-6,63%) with Chinese Hang Seng leading (-8,23%) due to very weak economic data and high worries coming from the troubled housing market. Stronger than expected macro numbers in the first couple of weeks pushed yields much higher correcting during last week to end +15bps in 10y treasuries (-1bps 2y, +8bps 5y, +21bps 30y), with a clear bear steepening. Higher yields helped precious metals down (gold -1,42%, silver -1,20%), Industrial metals as well corrected (Copper -5,6%, Aluminum -3,26%) with China woes in focus. USD stronger across the board with EUR and CHF down by -1,35%, JPY down by 2,29% and CNH down by 1,8%. China has been the main focus last few months, the imploding housing market, the related defaults in corporate bonds, and the overall high level of indebtedness are worrying investors. While the internal problems in China are very important issues, we think the major problem is that China may not be able to serve as a source of additional demand during the next crisis, as it has been the case since 2009, which could pose significant issues for the upcoming downturn. We continue to add inexpensive protection as the market becomes increasingly complacent.
