Investment Strategy
QUAAF runs a pooled mandate of internally and externally managed alternative strategies. We seek returns above inflation and preserve the real value of our capital — diversifying across strategies, asset classes, and regions within a disciplined risk framework.
6
Distinct portfolios
≤15%
Max in any one portfolio
0
Leverage at the fund level
4
Focus regions
The Six Portfolios
Capital is shifted across six distinct portfolios — externally managed, hybrid, and internally student-run — to balance diversification with opportunity.
Fund of Hedge Funds
The largest sleeve. We allocate to third-party Canadian alternative managers across equity long/short, market-neutral, merger and convertible arbitrage, event-driven, credit, and quantitative strategies. Externally managed · strategic.
Sustainable Investing
A hybrid portfolio investing in both external funds and individual securities, targeting companies best positioned to grow while leading on environmental, social, and governance (ESG) performance. Hybrid · strategic & tactical.
Thematic
A student-run, top-down portfolio chasing long-term structural change and technology themes — from single names to baskets of securities. Internally managed · tactical.
Real Estate
A student-run portfolio focused on North American real assets — infrastructure, retail, commercial, and residential. Internally managed · strategic.
Global Macro
A student-run portfolio seeking beta from international markets, with a focus on — but not limited to — Asia-Pacific. Internally managed · tactical.
Cash Management
A conservative, short-duration sleeve with daily liquidity, positioned to the near-term market outlook and managed by the Executive Team. Conservative · tactical.
Stability and Liquidity
Alongside the six portfolios, QUAAF holds a conservative sleeve of investment-grade fixed income and cash. These traditional, lower-volatility allocations add income and stability, help balance the risk of our equity and alternative positions, and keep capital ready to deploy as new opportunities arise.
How We Invest
Every investment follows a disciplined, multi-step approval process and sits within clear diversification and rebalancing rules.
- An investment pitch is presented at an all-hands meeting.
- The Executive Team approves it on a 4-of-6 majority — the CIO weighing investment merit, the risk lead weighing risk against guidelines.
- Final sign-off and execution require approval from two members of the Board of Directors.
Diversification
No single portfolio may exceed 15% of total assets, keeping the fund broadly diversified across strategies and regions — Canada, the United States, Asia, and the European Union.
Rebalancing
Allocations are reviewed and rebalanced at each quarter-end, with disciplined loss limits that trigger a review — or an exit — if a portfolio falls materially.
Risk Management
Risk is managed continuously by our Risk team. We monitor every portfolio and the fund as a whole using the standard deviation of returns and expected shortfall (95% confidence, 30-day), and work to minimize correlation to broad markets wherever possible. The total fund uses no leverage — even where underlying managers do — and positions are evaluated against tactical (0–18 month) and strategic (12–36 month) horizons, with the fund managed for the long term.
See It in Action
Explore how these strategies come together in our portfolio, or apply to help manage them.