Our Approach
DQT³ does not begin with the assumption that capital must always be invested or that a predefined strategy must always carry risk.
We begin with the opportunity set.
Different market environments reward different behaviours. Our process is designed to identify where attractive opportunities exist, determine how they should be expressed and define the risk required to pursue them.
Macroeconomic conditions, monetary and fiscal policy, geopolitical developments and structural changes establish the environment in which markets operate.
This analysis is complemented by volatility, positioning, cross-asset relationships and observed price behaviour.
We look for situations in which market behaviour, valuation, positioning or structural relationships create an attractive relationship between potential reward and risk.
Opportunities may be directional, relative or asymmetric.
Identifying a view is only part of the investment decision.
A thesis may be expressed through futures, options, spreads or combinations of instruments.
Liquidity, carry, convexity and downside characteristics influence how an opportunity is implemented.
Before risk is taken, we consider what would invalidate the thesis.
Position size, volatility, liquidity, correlation and portfolio interaction are assessed alongside the expected opportunity.
Markets provide continuous feedback.
Positions and assumptions are reviewed as conditions evolve.
Structured, but not static.
DQT³ combines a repeatable decision framework with the flexibility required to operate in changing markets.