Key facts
- UBS and LGT Capital are partnering on new quantitative investment strategies (QIS).
- The strategies are linked to Vix futures.
- The collaboration aims to avoid reliance on retrofitted backtests.
- The partnership will leverage a decade of live data.
- The goal is to enhance the reliability of QIS strategies.
UBS has entered into a partnership with LGT Capital to develop new quantitative investment strategies (QIS) that are linked to Vix futures. This collaboration is notable for its intention to avoid the common pitfall of relying on retrofitted backtests. Instead, the firms plan to leverage a full decade of live trading data to inform and validate their strategies. This approach is designed to provide a more robust and realistic assessment of strategy performance, as it is based on actual market conditions and outcomes over an extended period. By using live data, the partnership aims to build greater confidence in the efficacy of their Vix futures-based QIS offerings.