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At AlbaCore, we focus on the long-term. As one of Europe’s leading alternative credit specialists, we invest in private capital solutions, opportunistic and dislocated credit, and structured products. 

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Our philosophy is very simple. We are constantly searching for high quality businesses and when we acquire them, we will work relentlessly with them to create long-term sustainable value through innovation, ESG-led and proactive asset management.

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Leader in active quantitative equities across Australian equities, global equities, emerging markets and global small companies.

Backed by a unique blend of research, portfolio construction and risk management, focused on uncovering original insights and translating them into investment strategies that are active and systematic, aiming to generate alpha.

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At Stewart Investors, we believe in putting people first. Our investment world-view is of a series of partnerships – with each other, with our clients, with the companies we invest in, the people who buy their goods and services, and with the wider society in which we all live and work.

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Long Short Fund | RQI Investors

RQI Australian Diversified Alpha Long Short Fund

RQI Investors

Introducing the Australian Diversified Alpha Long Short Fund

An innovative and flexible systematic long short fund purpose built to outperform across market environments.

Join Dr Joanna Nash, RQI Investors' Head of Portfolio Management, and Dr Ron Guido, Senior Quantitative Portfolio Manager and Head of Alpha Research, to learn more.

How does the long short fund work?

The RQI Australian Diversified Alpha Long Short Fund uses a quantitative strategy to invest across the Australian shares universe in both long and short positions.

The Fund uses an adaptive leverage approach to determine the level of long and short positions, whilst always being 100% exposed. The Fund aims to deliver consistent risk-adjusted returns above the S&P/ASX 300 benchmark.

  • Insights are selected based on their economic rationale and efficacy in explaining future returns - all determined by rigorous empirical testing and model building.

  • Short positions are carefully determined by the same rigorous alpha model used for long positions.

  • Once alphas are constructed, they are combined with risk and trading cost forecasts to target the strategy’s objectives, combining an adaptive leverage approach to long-short investing, ranging from 140% long and 40% short, up to 160% long and 60% short.

  • The strategy maintains 100% market net exposure, allowing the strategy to take account of changing market conditions. 

What is adaptive leverage and how is it applied to the long short fund?

Adaptive leverage involves adjusting the overall size of portfolio positions to target a specific level of active risk, in this case typically 4–5%. Allowing leverage to vary within a defined range enables the portfolio to maintain its target risk more effectively across changing market conditions. In periods of lower market volatility, higher leverage may be required to reach the desired risk level; in more volatile environments, lower leverage can help contain risk. Like a ship adjusting its sails to navigate shifting winds and tides, the portfolio adjusts its leverage to stay on course through different market conditions.

This flexibility means the portfolio is not forced into suboptimal positioning due to a fixed leverage constraint. Instead, adaptive leverage supports a more consistent expression of our alphas, helping to preserve efficiency and maximise risk adjusted performance over time.

Join Head of Investments Dr David Walsh, Senior Quant Portfolio Manager and Head of Portfolio Management Dr Joanna Nash and Senior Quantitative Portfolio Manager and Head of Alpha Research Dr Ron Guido as they discuss their newest research.

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Take a deep dive into the long short fund's adaptive leverage approach in our latest insight:

'In search of Alpha: RQI Long-short and Adaptive Leverage'

Want to know more?

Contact the RQI Investors team