Volatility & Quality is a factor-based strategy that aims to create exposure to stocks with low volatility and a high quality rating. Rebalancing occurs once a month and the goal is to achieve a higher risk-adjusted return than the stock market.

All of our factor-based strategies are based on concepts where there are behavioral explanations for why they have the potential to outperform. These strategies help us act more rationally. By following a systematic strategy, we avoid the mistake of selling winning positions too early, for example.

Our model portfolios are included in our premium package. Click here to read more about our strategies.

Information

• Direction: Long-only (no short positions)
• Strategic direction: Quality, volatility and trend
• Investment universe: Nordic countries & USA
• Portfolio weights: Equally weighted (capital/number of positions)
• Rebalancing frequency: Monthly

Development

The strategy has been characterised by high volatility in 2025. After a rapid correction in the spring, the portfolio has recovered in line with the stock market. The main contributors during the year have been Lundin Gold, Raysearch and Howmet Aerospace, while AAK, Alfa Laval and Targa Resources have weighed on the performance the most.

Since the start of April 2024, the portfolio has returned 38%, compared to the Stockholm Stock Exchange's 25%. The Sharpe ratio has been 1.0 compared to 0.5 for the Stockholm Stock Exchange. Volatility has been 11.9% and tracking error against the Stockholm Stock Exchange is 13%. Note that the strategy changed its universe for 2025 and today allocates 50% of the capital to the USA.

Monthly development (%)*

*The development is indicative only and depends on execution, slippage and brokerage.

Changes in holdings

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