Key facts
- UBS and LGT Capital are partnering on new quantitative investment strategies.
- The strategies are linked to Vix futures.
- The partnership aims to avoid reliance on retrofitted backtests.
- The firms will leverage a decade of live data.
- The strategies focus on expected market volatility.
UBS has entered into a strategic partnership with LGT Capital to develop new quantitative investment strategies (QIS) that are directly tied to Vix futures. This collaboration is notable for its intention to move beyond traditional, often unreliable, retrofitted backtests. Instead, the firms plan to leverage a full decade of live trading data to inform and validate their strategies. The focus on Vix futures indicates a strategy centered on anticipating and capitalizing on expected market volatility. This approach seeks to provide a more robust and data-driven foundation for investment decisions in this specialized market segment.