How We Invest: Hanseatic Q Score
The key driver of our investment team’s buy and sell strategy is a dynamic, proprietary protocol that generates a Q Score for every stock reflecting their performance potential.
Hanseatic’s research and development process behind the Q Score spans over two decades. The resulting quantitative protocol allows us to evaluate a universe of stocks based on the universe our clients are interested in and assess each stock’s strength.
The Q Score is a dynamic identifier of strong market performers. Using the protocol, each stock is assigned a score from 0 to +9; the higher the score, the better reward/risk profile. Our investment team considers stocks with a positive Q Score as a potential buy; stocks with a Q Score of 0 are sold. Driven purely by quantitative analytics, this core part of our investment process is bias-free.
The Q Score focuses our attention on the strongest individual stocks regardless of market conditions, geographies and sectors. With the Q Score established and universe of stocks narrowed significantly, our investment team then constructs a portfolio based on client requirements and a mix of drivers.