What do you look for in a strategy?

Hello everyone,

I’m rather new here and I’m curious: What do subscriber look for in a strategy? In other words, what’s your wishlist for a strategy?

An institutional Investor mainly looks for rock solid risk management, specifically: no left tails, balanced correlation risk, liquidity constraints, limited industry and factor exposure etc. On top of the risk management the true selling point is that the strategy is not correlated to equity market returns and preferably not too highly correlated to the investors existing strategies. This indicates the strategy has real alpha and is not just some hidden (alternative) Beta on the S&P 500 :smile:

Develop strategies that fulfill the above and you got yourself a job at firms like worldquant, renaissance technologies and a like - but it’s harder than it sounds