Strategic Brief
The Cure for
Lazy Capital.
Most investors "rent the index" out of convenience.
The iQUANT U.S. Mega Cap 10 owns the giants on purpose.
The Model sticks to a strict, no-shortcuts process. Out of the 90 biggest U.S. companies, we don’t go by headlines or hype—we look for the ones that are truly leading on the fundamentals: strong margins, efficient earnings, and solid profit margins. We narrow it down to the top 10, weight them equally, and tune out the noise.
Avoiding "Diworsification"
The financial industry loves "Diworsification." They tell you to buy the index because it is safe. But when you buy the haystack to find the needle, you end up buying the **chaff** too. Cap-weighting is a momentum strategy that buys more of a stock simply because it has gone up.
Our Operating Tenets
Aggressive
Defense.
By sticking to a disciplined process that weighs key factors like valuation, capital efficiency, and strong earnings, we’ve historically been able to reduce downside risk. It’s not about chasing headlines — it’s about casting a wide net, focusing on fundamentals, and making decisions rooted in what actually drives risk-adjusted performance.
Protect First, Then Pursue Growth
Our first job is to prevent blowups. We focus on drawdown control and liquidity. Only after downside is managed do we reach for upside. "Live to fight another day" is a core investment value.
The Subscription Advantage
We charge a low flat fee, not a percentage of assets. This eliminates AUM drag, ensuring that as the portfolio grows, the upside stays with the client rather than compounding fees for the manager.
"The secret to winning is simply losing less."
Stress Tested
by History.
Narratives crumble under pressure. Math does not. We do not ask "what if." We look at "what happened."
The Crisis Protocol
When markets crack, most people panic. A disciplined approach doesn’t flinch—it sticks to the plan. By sidestepping the worst drops, the recovery isn’t just quicker—it starts from a better place.
| Metric | iQUANT | S&P 500 |
|---|---|---|
| Max Drawdown | -38.9% | -50.9% |
| Ulcer Index (Pain) | 8.5 | 13.7 |
| Downside Capture | 80% | 100% |
| Recovery Factor | High | Low |
The Compounding Effect
Staying steady beats getting emotional. By regularly cutting out weak or overpriced companies, we keep the odds in our favor—and that’s what helps build real wealth over time.
| Metric | iQUANT | S&P 500 |
|---|---|---|
| CAGR (Since 1990) | 18.3% | 11.5% |
| Best Year | +68.5% | +37.6% |
| Positive Years | 33 | 30 |
| Sharpe Ratio | 0.96 | 0.62 |
The Compounder's Edge.
Superior returns are not generated by swinging for fences. They are generated by staying on the field.
*These results depend on staying committed to the strategy through every market cycle. Stepping away during downturns can significantly impact long-term outcomes.
Definitions & Disclosures
For Investment Professionals Only: This content is provided exclusively for licensed investment professionals. It is not intended for retail investors. As an investment professional, it is your responsibility to evaluate the methodology and determine its suitability for your clients' specific financial situations and risk tolerance.
Publisher's Exclusion & Non-Registered Status: iQUANT.pro is a publisher of financial information and is not a registered investment adviser (RIA), broker-dealer, or financial analyst. The information provided herein is for educational and informational purposes only and is not intended to be, nor should it be construed as, personalized investment advice. We rely on the "publisher's exclusion" from the definition of an investment adviser under the Investment Advisers Act of 1940.
Hypothetical & Backtested Performance: The performance data shown represents the results of backtested model portfolios. Backtested performance is hypothetical and does not reflect actual trading. It is prepared with the benefit of hindsight. There are inherent limitations in backtested results, as they do not account for the impact of material economic and market factors on decision-making. Actual performance may differ significantly.
Risk of Loss: All investing involves risk, including the possible loss of principal. Strategies discussed may not be suitable for all investors. Past performance—whether actual or backtested—is no guarantee of future results. Concentration in a specific sector or a limited number of securities (such as the 10-stock model shown) increases the risk of volatility.
Fees & Assumptions: Performance results shown are net of a 0.50% assumed annual model fee but do not include trading costs, commissions, or taxes, which would further reduce returns. Data sources are believed to be reliable but are not guaranteed for accuracy or completeness.