www.quadrexx.com info@quadrexx.com

Our Clients

Whether an institution or a high net worth family, people work hard to make money and accumulate assets. The clients we attract are those who want to hold onto their funds rather than ride a financial rollercoaster.

Retail clients tell us their goal is to pay for their kids' education, to leave a legacy, to fund philanthropic plans or to retire while they're still young enough to travel and enjoy life. Our institutional clients may be looking for steady and consistent risk-adjusted performance complemented by comprehensive client reporting. All our clients look to us to provide stable, concrete results over a long-term investment horizon and that's what we undertake to do.

Though a recent increase in the volatility of global markets has been challenging, the well-researched methodologies of our products and their emphasis on Fund of Hedge Fund strategies give us the ability to smooth out the dips and deliver more predictable returns thus satisfying our clients and sustaining the long-term relationships we have so carefully built with them.

That is why our clients have chosen Quadrexx.

Who We Are

Quadrexx Asset Management Inc., an Investment Counselor and Portfolio Manager (ICPM), was founded in 2003 but our roots in the investment industry date back more than two decades. We are an independent, Canadian manufacturer and distributor of investment products for financial intermediaries, high net worth investors and institutions, committed to providing clients with long-term results focused on capital preservation. When new market conditions call for new solutions, innovation becomes the order of the day.

• For its first product, Quadrexx chose Sigma Analysis & Management, an investment research team incubated by the Fields Institute for Mathematical Research at the University of Toronto, to help develop and create a global fund of hedge funds, the Quadrexx Market Neutral Performance Fund (QMNPF).
• Our single manager Equity Long/Short hedge fund, the Cheops Enriched Long-Short Fund was launched in April, 2006 with the aim of creating low risk and steady returns. It has shown its resilience during the recent stock market turmoil.
• In the winter of 04/05, we created the methodology of the first Investible Index Plus product of Canadian hedge funds whose objective is to outperform Canadian Hedge Watch Inc.’s non-investible Canadian Equity Hedged Hedge Fund Index (www.canadianhedgewatch.com). Research had shown that purely passive hedge fund indices have substantially underperformed their non-investible counterparts so the methodology for the new investible index called for a hybrid approach with both passive and active management. Quadrexx has tracked the performance of the Index Plus fund since April, 2005 with very encouraging results and the product is to be launched on October 31, 2007, both off-shore by Quadrexx’s Cayman Islands subsidiary, and in Canada.
• Financial advisors came to us looking for help. The needs of their high-end clients were unique in the markets they had chosen and called for unique solutions rather than cookie-cutter investment planning. Having listened to the advisors’ insights and incorporated their philosophies we are about to create exclusive wrap programs that include both traditional and alternative investments to satisfy their clients’ needs.

Experience tells us that, in the long run, a disciplined investment approach that includes a steady eye on global economic and market trends, comprehensive analysis and active risk management, wins hands down over aggressive, high-risk investment practices.

Our Investment Philosophy

The core of our investment philosophy is the use of a strategic approach to risk management which aims for real and acceptable returns.

Success in securities markets is achieved by balancing risk and reward, by ensuring that a portfolio is properly diversified in the first place and then by monitoring and managing on a regular basis. At Quadrexx, we believe you don't have to take big risks to gain long-term rewards and our investment decisions are based on four key principles:

• Limiting losses leads to better returns
• Buy and hold does not work in all market environments because bear markets happen
• Non-traditional investment strategies provide flexibility and true portfolio diversification
• A consistent and disciplined investment process that emphasizes risk reduction produces the best results for our clients.

The Quadrexx process focuses on capital preservation. We identify and taking advantage of diverse investment opportunities to produce superior, long-term returns while actively managing risk.

Investment Process

Our competitive edge lies in an active and sophisticated approach to investment management.

The vast majority of money managers and investors prefer to stay the course, fully invested in the markets at all times because they believe that equity markets will always trend upwards over time. Although that’s true, history tells us that another constant in equity investing is the inevitable rise and fall of the markets, a simple, indisputable fact about stocks, bonds, commodities and any other publicly traded asset class.

We agree that an end to the market’s upward trend would probably signal the end of capitalism as we know it and yet we advocate a slightly different investment process from the buy-and-hold approach that has worked so well over an entire century. We believe that if you can improve on performance without increasing risk, you should capitalize on it.

At Quadrexx we follow the multi-tiered investment process detailed below. It translates our thinking into disciplined action and has been proven to be highly effective.

1. Independent market and economic research
   
   In order to detect and take advantage of economic trends our research team continually gathers information about the markets and the North American economies. This, together with outside analysis and research, allow us to make better and more informed investment decisions for our clients. The information feeds the quantitative models we have developed during a decade in the investment management business.
    
2. A comprehensive stock selection process
   
   In managing both our single-manager hedge fund and our private client portfolios we use an approach based on Enriched Value that looks for companies with solid fundamentals which also meet certain anomalous criteria.
   
   Our proprietary stock selection program based on extensively researched criteria screens all stocks for a group of non-traditional indicators and is designed to pick strong performing equities. Although the model ensures the selection of solid companies, the primary goal of the program is to pick good stocks.
    
3. A risk management process
   
   Risk management helps us stay focused as prudent investors and allows us to make fact-based decisions rather than emotional ones, a key requirement when markets are volatile. At Quadrexx we don't sit on the sidelines and hope for the best, instead we measure risk, monitor it actively and react to it when necessary. This disciplined approach to risk management helps us to protect our clients' capital and provides us with a clearer lens and a sharper focus on the markets.

For further information, please contact:

Vernon Lewis
Quadrexx Asset Management Inc.
20 Bay Street, Suite 1501
Toronto, ON, M5J 2N8
Canada

Tel: +1 416 216 4632 ext. 2224
Cell: +1 647 221-7929
Email: lewis@quadrexx.com
Web: www.quadrexx.com

 

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