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Alternative Market Briefing

Rotella Qdeck envisions hedge funds as a service

Monday, March 22, 2021

Rotella Capital Management has a new look. The firm, now known as Rotella Qdeck, is reimagining itself with the aid of new technology and a new platform for investors.

Rotella Qdeck is a fintech platform offering "hedge funds as a service". In essence, the platform offers investors custom strategy design and implementation. The firm's six investment strategies are also available on the platform. Strategies are primarily offered as separately managed accounts but structures can also be customized based on the needs of a given investor.

The platform is the culmination of two years of work Rotella has done to refine and improve its trading programs and investor offerings. In the fourth quarter of 2018, Rotella implemented machine learning models across the entire spectrum of Rotella funds. Today, approximately 70% of the programs use machine learning models. After just a year with the updated approach, the onset of the pandemic put Rotella's trading programs to the test. They succeeded - one strategy outperformed its benchmark by 20%.

The Qdeck Rotella Systematic Trend Program is up 3.26% year to date through February and ended 2020 up 21.07%, according to performance information for investors obtained by Opalesque. The program uses a multi-model, multi-time-frame approach to invest in global commodity, interest rate, equity index and foreign exchange markets using statistical and machine learning models, and was formerly known as Rotella Polaris Program. The Program was launched in 1991 based upon Robert Rotella's quantitative study of price trends in global markets and disciplined risk management methodology.

The Qdeck Rotella Short-term Momentum Program is up 0.83% year to date through February and ended 2020 up 7.10%. The futures program is designed to identify and capitalize on short-term price movements in global commodity, interest rate, equity index and foreign exchange markets. It was formerly known as Rotella Aquarius Program. The program contains a blend of ideas looking to capture breakout and mean reversion behavior in a shorter time horizon using statistical and machine learning models.

The Qdeck Rotella Equity Tail Diversifier Program ended 2020 up 17.68%. The systematic futures program is designed to identify and capitalize price movements in both bull and bear markets in equity index futures across the globe. The program was formerly known as Rotella Eta Carinae Program. The models are a blend of ideas looking to capture trend, breakout and mean reversion behavior in the short and medium-term time horizon.

The Qdeck Rotella Tactical Long-biased Volatility Program ended 2020 up 20.06%. The strategy uses a rules-based systematic approach to trade volatility futures with an equity hedge. It is a combination of an opportunistic long-short system trading VIX futures contract hedged with E-Mini S&P 500 futures, an opportunistic long-short system trading VSTOXX futures hedged with Euro STOXX 50 futures, and long-only positions in each of the assets.

The Qdeck Rotella ML Long-only Volatility Program ended 2020 up 27.52%. It uses machine learning to maintain long volatility futures positions hedged with equity futures.

The Rotella Qdeck Systematic Global Macro Program ended 2020 up 0.13%. The strategy is a tactical intermediate-term futures program and was formerly known as Rotella Cygnus Program.

Rotella says it believes that machine learning is the future of quantitative investing and the proof can be seen in its performance since it updated its models. The implementation of machine learning is overseen by the investment management team, the data science team, and engineers that make it all work. The three groups work together to identify signals and ideas that can work in Rotella Qdeck's existing strategies as well as customized offerings on the platform.

On March 30, Rotella Qdeck CEO Jagdeesh Prakasam, will be discussing the Qdeck platform and the firm's approach in more detail during Opalesque's upcoming webinar - "Corona Fighters Revisited: Winners of the Winners" - registration is free at the link below.


Next Webinar:

Corona Fighters REVISITED

The "winners of the winners": Strategies that not only performed in Q1 2020 but also during the rebound later that year.
With:
• Stephane Prigent, Katch Investment Group
• Michelle Leung, Xingtai Capital
• Tony Bremness, Laureola Advisors
• Jagdeesh Prakasam, Rotella Qdeck

When: Tuesday, March 30th at 10 am EST
Free registration: www.opalesque.com/webinar/


***

On a separate note, you can listen and subscribe to Opalesque's Clubhouse podcasts here:

Register here if you are interested in speaking at a future Clubhouse session of the Clubhouse Alternative Investment Club: https://www.opalesque.com/clubhouse/


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