Q10 – A FRESH
LOOK AT QUANT
INVESTING
© 2019 www.intelsense.in
Introducing Quantamental Q10
With the great success of Quantamental Q30, there has been multiple requests to
have a strategy that addresses two primary needs:
– Lower capital requirement
– Lower subscription fee
We have been trying to build a strategy which will be similar but complimentary to
Q30 which will address these two concerns – introducing Q10
Q10 now offers a lower minimum investment requirement at a lower
subscription fee.
Q10 invests mostly in large and mid-caps with somewhat lower returns and
somewhat lower drawdowns compared to Q30 over a market cycle. It is also likely
to be more volatile.
As of now Q10 is going to be offered only on smallcase platform for new
subscribers and may be added to Intelsense direct option in future.
https://intelsense.smallcase.com/smallcase/INSMO_0004
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Comparing between Q30 and Q10
Principles Q30 Q10 What it means?
Q30 often has a large
proportion of mid and small
caps.
- Focus on all market caps
- Focus on large and micaps Q10 by remaining focused on
Stock selection Universe - Above 1000 CR market cap
- Nifty200 Index or similar Nifty200, will primarily invest in
- Liquidity filters
large caps and midcaps. This
will have a complementary
role.
The system design will force
- Automated review daily
- Reviewed and reset every earlier exits and replacement as
- Reset monthly
week. compared to Q30 wherein the
Review and Reset Frequency - Stop loss or profit booking
- There may not be exit or same stock can continue
execution can happen at
entry every week however. longer.
anytime.
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Comparing between Q30 and Q10
Principles Q30 Q10 What it means?
- Q30 is a highly diversified Q10 will be comparatively a Higher concentration is a
portfolio highly concentrated portfolio double edged sword.
Position Sizing
- Starting allocation of 3.33% with position sizing around 10% We expect Q10 to be have
for each stock at the time of entry. higher volatility than Q30.
Q30 requires investing in up to
30 stocks which tend to be
- Last 1 year return has been dominated by midcaps and
98% - Past data indicates 20%+ small caps and it will go through
- Past data indicates 30%+ CAGR over longer periods. its period of underperformance.
CAGR over longer periods. - Future returns may be lower
- Future returns may be lower depending on market and For someone having lower
depending on market and economic growth corpus and more keen to invest
Return expectations
economic growth - Of course there are no in mostly large caps and
- Of course there are no guarantees of performance. midcaps, Q10 may make more
guarantees of performance. The strategy could and sense.
The strategy could and sometimes would make Returns are expected to be
sometimes would make losses lower in Q10 over longer cycles
losses as compared to Q30 and
drawdowns are also expected
to be somewhat lower.
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I am an existing Q30 subscriber. Should I use Q10?
For existing Q30 subscribers who have subscribed directly through www.intelsense.in
– Q10, with it’s focus on largecap and midcap stocks, can be used to have a better diversification and more stable return
profile.
– For now Q10 is being offered as part of the Q30 subscription. There is no additional cost to Q10 strategy.
– If you can take buy/sell actions every week and would want to have a better diversification then you can deploy some
funds as part of the strategy.
– If your investment corpus is large you may want to diversify your holding further by using Q10 along with Q30
– There will be some stocks which may be in both Q30 & Q10. Please keep the allocation separate and treat them as
separate holdings.
– It is obviously not necessary to invest in Q10. If you do not wish to run two concurrent strategies or you don’t want to
take weekly actions, you may skip it altogether.
Q30 subscribers who are on the smallcase platform would not be having access to Q10 as smallcase does not provide
the facility
Do NOT subscribe to the new Q10 smallcase. You will receive the Q10 stock list on email like you receive the Q30
Quantletter.
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I am new to Quant investing. What should I do? How can I subscribe to Q10?
If you have a large corpus to invest and can devote the time, you can use both Q30 and Q10. Subscribing to Q30 from
www.intelsense.in will get you access to both the strategies.
If you have limited capital, then you could start with Q10. Once you are able to generate a larger capital you can consider
moving up to Q30.
The Q10 strategy has been running live on
smallcase platform in beta mode since 15-
Mar-21.
We are not publishing backtest going back
several years, as we have observed that many
people have backtested data that looks very
good on paper but in real world, the returns are
much lower and as a result people are only
finding the live results data to be credible.
To see the performance and subscribe -
https://intelsense.smallcase.com/smallcase/INS
MO_0004
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