Staedel Hanseatic has left behind the myth of modern portfolio theory and its core postulate that high returns can only be obtained at the price of high volatility. Staedel Hanseatic has shown that it is possible to generate above-average returns and simultaneously limit losses during bear markets. Our proprietary Staedel Hanseatic Research Database forms the basis for our high-quality quantitative algorithms, rule frameworks and strategies, which help us to meet our portfolio management goals on behalf of our clients.
Staedel Hanseatic pursues a quantitative investment approach. That means that we steer our portfolios according to fixed sets of rules (algorithms). We have consciously chosen this investment style because discretionary portfolio management tends to reflect portfolio managers’ emotional weaknesses. Such weaknesses may lead to the non-realisation of losses or premature profit taking.
A rules-based management prevents such emotional problems, as sell signals will indeed trigger sales. We regard ourselves as users of a puristic quantitative portfolio steering: signals are implemented consequently, and portfolio managers may not intervene.
At the core, the success of Staedel Hanseatic’s quantitative investment strategies depends on the quality of our algorithms. Quality considerations influence the databases used for strategy development as well as basic decisions, such as the conscious rejection of Monte Carlo simulations for design elements or the inclusion of stability measures such as the maximum temporary capital loss, and ultimately impact the algorithmic target function. Click here to read more on the issue of algorithm quality.
We use more historical data for our algorithms in order to obtain more stable returns in the future. Extensively researched and validated historical market information prepares our portfolios for the broadest possible range of market developments. More than 1500 years of time series for the global equity markets, 250,000 complete daily commodities prices and 50-year proprietary bond indices are at the heart of our unique Staedel Hanseatic Research Database. Whether galloping inflation or deflation, commodity price rises or equity crash – our algorithms are prepared.