A quantitative edge in uncertain markets

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Insight

27 June 2025 |

Macro

Daniel Mahr, Head of MDT Group, explains how our quant strategies have adapted through the recent market turbulence – and the benefit of data-driven decision-making in uncertain times.

Video transcript

One of the advantages to a quantitative approach to investing in equity markets is the ability to adapt quickly to new information. Markets have been volatile recently in light of proposed tariffs and other regulations coming through the new administration.

One of the most interesting things that we have been doing in our portfolios is reduce exposure to momentum names which had been driving markets higher in the past couple of years.

Where we have redeployed that capital is actually very interesting. We’ve been buying a number of names that have been impacted by the proposed tariffs and regulations. So, our model tends to favour companies where there are dislocations in price up to 60, 70 or 80% off of their 52 week highs, but where we see strong balance sheets and the ability to generate cash flows and weather the market storm.