The 3+ years old 360 One Quant Fund has delivered strong alpha over broad market (30% vs 20% CAGR over the last 3 years), with a highly differentiated portfolio and strategy – thus offering distributors an opportunity to effectively diversify their clients’ equity portfolios by adding this fund.
At the core, this is a momentum factor fund, but with a quality filter overlay to weed out riskier stocks exhibiting momentum.
Portfolio construct has two key guardrails that endeavour to provide a smoother journey than most momentum funds:
- Equal weighted portfolio of around 35 stocks, with each carrying around 3% weight. Equal weighted portfolios tend to be far less volatile than concentrated bets portfolios.
- Sector weights aligned with broad market benchmark weights to ensure no acute sectoral biases that often characterize pure momentum portfolios.
What this unique portfolio strategy has delivered in these 3+ years is strong alpha along with some level of downside protection – the fund did far better than pure momentum funds in the recent correction from Sep 24 to Mar 25.
The fund manager does not intervene with any “active” inputs as the model has been finetuned with a good mix of alpha generating capabilities coupled with risk management guardrails to reduce volatility.