QAS MODEL PORTFOLIO PROGRAM ALERT
QAS GOLD LONG/SHORT STRATEGY PROVIDES AN ULTIMATE HEDGE DURING VULNERABLE MARKET PERIODS
This has been nothing but an uncertain and vulnerable period for the US equity markets year-to-date 2025. Considering the increasing amount of controversial economic and geo-political news each week, we should probably expect more “trendless” market conditions later this year. In our quantitative methodology, such periods are characterized as “low conviction bias-range” phases within an idealized investment cycle.
Fortunately, our traditional “safety” instruments including gold, performed relatively well YTD. However, it was not always the case during the past few years. We witnessed several periods of time when the gold price declined alongside the equity markets (March 2020, April-June 2022).
When we talk about an effective hedge, we should keep in mind a potentially “low-to-negative” correlation of the hedging instrument vs. equity market.
QAS Gold Long/Short strategy became an ULTIMATE HEDGE instrument over the past three years, and continues to maintain its solid track record in 2025:
As of 02/28/25, this strategy outperformed vs. all asset classes, especially when compared to the “flat-to-negative” performance of broad-based US equity benchmarks.
QAS Gold Long/Short Strategy has 4 dynamic regimes:
Regime 1 — Positive, Aggressive (+2x Leveraged exposure)
Regime 2 — Positive (+1x Beta exposure)
Regime 3 – Neutral, Negative Bias (Cash)
Regime 4 – Negative, Aggressive (-2x Leveraged exposure)
Currently, it’s in Regime 3 – Neutral, after taking profits from an impressive run earlier this year.
Please let us know if you would like to learn more about implementing this strategy for hedging purposes.
