Changes in Volatility & Quality
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 on the website.
Volatility & Quality
- Direction: Long-Only (no short positions)
- Strategic direction: Quality, volatility and trend
- Investment universe: Nordic countries & USA
- Portfolio weights: Likaviktat
- Rebalancing frequency: Monthly
Development Volatility & Quality
The strategy delivered a return of 29% in 2024 with a Sharpe ratio of 1.9, a volatility of 11.8%, a correlation to the Stockholm Stock Exchange of 0.69 and a tracking error of 10.4%.
Hoist Finance, Ambea, Kemira, Saab and Lundin Gold were the biggest positive contributors in 2024, while Qt Group, Proact IT and Atlas Copco were unfortunately the biggest detractors.
Development 2024
Monthly development (%)*
| Year | Jan | Feb | Mar | Apr | Maj | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total |
| 2023 | 1.22 | 2.98 | 0.95 | 0.84 | -0.71 | -1.85 | 1.19 | -2.18 | 2.23 | 4.64 | |||
| 2024 | 5.64 | 3.41 | 5.66 | 2.97 | 6.55 | 0.19 | 3.25 | 0.14 | -0.24 | -3.48 | 1.33 | 0.89 | 29.15 |
| 2025 | -1.55 | -1.55 |
*The development is indicative only and depends on execution, slippage and brokerage.
Change strategy
As promised, we are now implementing changes to create even greater variety in our monthly stock strategies. The Volatility & Quality strategy is broadening its universe and now includes stocks from Sweden, Norway, Denmark, Finland and the USA. We continue to focus on finding high-quality companies – companies that stand out through high margins, strong return on capital, low debt, good earnings quality and preferably a growing dividend. This is combined with low price volatility and a stable upward price trend, which creates a balanced and sustainable strategy for the future.
Another change is that we will now report performance based on equal portfolio weights instead of volatility-adjusted weights. This makes the strategy even more accessible and transparent, while you as a client retain full freedom to choose which weighting best suits your own investment goals. We believe these changes make it easier and more inspiring to follow our strategies!
Changes in holdings
The change means major shifts in holdings this month, but it is important to remember that such extensive adjustments will not happen every month. We see this as a step forward to further strengthen the long-term potential of the strategies, while maintaining stability and continuity in the ongoing work.
We sell stocks that have fallen out of our new ranking and use the cash to buy new holdings.
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