Demystifying defensive QIS | Barclays IB
Myth 1
Jonathan Jackson: Today, we’re unpacking a few myths in Defensive Quantitative Investment Strategies. Vincent, let’s start with one I hear quite a bit. The one size fits all approach works.
Vincent Samat: Well, most investors do want to minimize risk and preserve capital during a market downturn. However, the speed and the magnitude of the move during a downturn can vary quite a lot.
Jonathan Jackson: So defensive strategies are designed with specific market conditions in mind?
Vincent Samat: Exactly. And when you’re using QIS for a hedging program. It’s just as important to think about how it’s going to perform during the bull market, during normal market conditions, as well as to assess how it’s going to perform…
