Quadratic’s differentiated approach to portfolio construction uses options. By using options, each position has a defined downside and asymmetric risk/reward. Quadratic’s inherent long volatility portfolio seeks to deliver uncorrelated returns in a risk-off environment and to limit the frequency and severity of drawdowns. We believe investing in options creates superior alpha opportunities due to market inefficiencies that have arisen from regulatory and risk limit changes at banks and dealer desks.
Quadratic Capital Management LLC is an innovative alternatives asset management firm founded in 2013 by Nancy Davis and based in Greenwich, CT. We express directional views primarily with liquid options and swaptions across FX, rates, equities, commodities, and credit. We believe options allow us to manage risk more effectively and to add additional alpha to our portfolios by exploiting mispricings in volatility markets.