RQI Investors: Plans to Slightly Increase Energy Stock Holdings

Joanna Nash, Head of Investment Portfolio Management at RQI Investors, a subsidiary of Prime Source Group, pointed out that the duration of the current Middle East conflict is longer than initially expected. The quantitative fund she manages, the RQI Global Value Fund, continuously identifies investment opportunities through quantitative models and uses news reports and analyst opinions to quantify geopolitical risks, including the Middle East conflict, to make stock selection and position decisions.

Nash rebalances her investment portfolio once a month based on the quantitative model. In special situations, such as the escalation of the Middle East conflict, she also adjusts the portfolio according to the risk level. Facing the current volatile geopolitical landscape, she said there are almost new developments every hour. Constantly adjusting the portfolio based on emerging information would only increase investment risk and volatility.

Nash stated that before deciding to rebalance the portfolio, the most important thing is to consider whether the event’s impact is only temporary and whether the change in circumstances deviates from her original long-term view. She revealed that since the outbreak of the US-Iran conflict, she has made an additional adjustment to her portfolio once and plans to rebalance again this week, slightly increasing holdings in energy stocks. She also mentioned that the conflict will have a lasting impact on transportation costs and inflation, and the bond market is reflecting rising risks of interest rate hikes.