Quadratic is an options-based discretionary macro strategy. Quadratic’s differentiated approach to portfolio construction uses options to express fundamental global macroeconomic themes. 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 is an innovative, woman-owned investment advisory firm focused on global macro strategies. We express numerous macroeconomic 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 macro themes by exploiting mispricings in volatility markets.