NAVIQUANT illustrates, on one hand, our desire to help our client steer their financial life in the right direction. We help them navigate the difficulties of planning. On the other side, it represents our quantitative, unbiased, and systematic approach to portfolio management. Lastly, it is reminiscent of the French word NAVIGUANT which means sailing.
We are thrilled to announce the accomplishment of Cassie McDonald who has recently earned the Certified Securities Compliance Professional – Investment Advisor (CSCP-IA) designation and joined the esteemed National Society of Compliance Professionals (NSCP).
Cassie's attainment of the CSCP-IA reflects her unwavering commitment to maintaining the highest compliance standards within our organization. Her dedication to professional development and expertise in navigating regulatory complexities align seamlessly with our company's values.
The NSCP membership further solidifies our commitment to staying current with industry regulations and best practices. As we celebrate Cassie’s success, we also emphasize our collective dedication to fostering a culture of continual learning and excellence in compliance.
Cassie's skills and knowledge are invaluable assets that will enhance our ability to navigate the evolving regulatory landscape. We extend our sincere congratulations to Cassie on this well-deserved achievement and express our gratitude for her ongoing contributions to our organization.
This milestone serves as a testament to our company's dedication to compliance, ethical practices, and the pursuit of excellence. We look forward to continued success with Cassie as an integral part of our compliance team.
NAVIQUANT GLOBAL LOGIQ CIT CUSIP: 63942V100 CLASS 1: LOGIIX Over the past months, we have partnered with Alta Trust to create the Naviquant Global LogiQ Collective Investment Trust (CIT). As the CIT’s sub-advisors, we are delighted to announce that earlier this week the CIT had officially launched. The Naviquant Global LogiQ CIT is now available on many 401(k) platforms under the ticker symbol LOGIIX and CUSIP 63942V100. This is an exciting step forward to bringing our quantitative strategy to the 401(k) and 403(b) marketplace and offer participants a more adaptive solution to changing markets. For all additional information on the strategy and availability, please contact our office at (971)340-4832. The Naviquant Team
“The only constant is change.” (Heraclitus – Greek Philosopher)
Opening our first blog with a cliché may seem like an odd choice, but that does not make it any less true. At Naviquant Capital Management (NCM), we recognize that change is always happening; we embrace it, and even consider our firm to be built from it. Our intent is to develop this firm into an adaptive practice that can evolve with the shifting needs of our clients, and the outside forces that are the catalyst for this change.
The earliest beginnings of NCM began several years ago, on the back of a 2017 model built by co-founder Jocelyn “Joce” Servignat. During his research into optimizing portfolios for clients, he came across many investing and trading methods. His interest was piqued by the world of factor investing.
Factor investing is defined as “a strategy that chooses securities on attributes that are associated with higher returns”. There are many examples, but some of the early factors include: value, growth, market cap, and low volatility. In the arena of factors, these are only a small substratum and many in the field argue that there are hundreds of factors that people may use to invest. These factors have given rise to a plethora of theses, some of which are more unique than others. In the end, Joce settled on momentum as the basis for his investment model. Its definition may sound slightly similar to that of Isaac Newton’s first law of motion, “An object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force.”
Momentum investing is based on the idea that securities that have performed well will continue to do so, while poorly performing securities will also continue their downward trajectory. In relation to trade factors, momentum does not exclusively depend on a number to explain the factor (i.e., size\market cap, value\valuations, etc.). The proposition is that the behavioral biases of buyers greatly affect the movement of securities. In its simplest form, as more and more people buy, further will follow until some unforeseen negative news changes the course of market trends. Behavioral finance plays a large part in the premise of momentum investing. There are biases that exist among investors that determine how they invest. A few examples shed light on the premise behind momentum investing:
Herding – This is a bias that refers to investors following or copying what other investors are buying or selling. Example: MEME stocks and the runup of Game Stop.
Overreaction – when a security is bought or sold excessively to psychological behaviors and not fundamental analysis.
Disposition Effect – Investors bias to sell rising securities too early and hold onto faltering securities for too long.
Momentum is the keystone to us at NCM. We use it in relation to most facets of our business and one of the best examples lies in the way we structure our clients’ investment portfolios. We start with the two most crucial factors, which are the risk profile and objectives of each client. This gives us the maximum risk level that our client will be comfortable with. Our momentum strategy will then reallocate assets, periodically, within that maximum risk level to adapt for the ups and downs of the equity or fixed income market. In other words, our portfolios are customized and dynamic.
In the near future we are going to be sub-advising a Collective Investment Trust (CIT) with Alta Trust for new and existing 401(k) clients, and we intend to outsource our model to other advisors. As with all areas of our business, the core of our strategy will be built off momentum in the simplest of definitions.
Co-founder’s note: So, this is our first blog, yup, we did it. We are now made official in the financial world with the million plus blogs written (not an actual verifier, and not an accurate number). All joking aside, we want our friends, clients, and new followers to understand who we are and why we are here. At NCM we intend to publish more material based on our momentum model, the markets, and our client conversations. We look forward to having a conversation with you soon!
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