VAMA Fixed Income Program

Detailed View

VAMA is QEX’s bond investment strategy.

VAMA is designed to identify trends in high yield and high yield-like bonds and invest in ETFs than can capitalize on those trends.

The goal of VAMA is to generate returns two ways. First, through the interest generated by high yield bonds and second through capital appreciation when the high yield bond market is rising in price.

VAMA is a market timing program. When the model determines that conditions are not favorable it will take a defensive posture and move some or all assets to the relative safety of money market funds.

VAMA is a strategy that attempts to identify and capitalize on prevailing trends in the high yield fixed income (bond) market. The model aims to benefit from the momentum of asset price movements, irrespective of underlying economic fundamentals. The key principle is to follow the direction of the market trend when that trend is upward and to move to safe assets (such as cash or money market funds) when the direction of the market is either down or unclear.

VAMA employ technical analysis tools including moving averages and market volatility to identify and confirm the existence of trends.
VAMA seeks to enter positions in the direction of the established trend and to exit when signs of a reversal emerge. The high yield bond market often exhibits sustained directional movements over time, and by aligning with these trends, strives to capture price and coupon appreciation while managing the risks associated with abrupt market reversals. VAMA is designed to be adaptable and responsive to market dynamics, allowing us to navigate changing conditions and potentially generate returns in various market environments.