AQ Research is an independent equity research team, focused on the Industrials sector. Our approach is primarily model based; we build and implement our own proprietary models in order to identify potential long/short opportunities and investment ideas that have the potential to outperform market benchmarks. We offer an alternative perspective.

Our models are largely quantitative, based on a combination of both proprietary research and third-party research papers. We use a range of variables, including fundamental accounting metrics, market and price data, economic data, and quasi-qualitative data. We make no representations as to the efficacy or accuracy of our models, however our aim is to draw unbiased, objective, model-driven inferences with a net-positive success rate.

The focus of our research is on assessing the risk and quality of stocks in the Industrials sector. The simple idea is that higher-risk, low-quality stocks will underperform lower-risk, high-quality stocks–all else equal. We use a large number of variables, formulas and scoring systems, yet we aim to present our research in a basic, straightforward manner.

Finally, note that our objective is to develop models that serve a purpose, i.e. to support investing decisions. In this regard, in order to have “skin in the game”, we remain open and willing to establishing positions based on our research. Nevertheless, our approach is experimental and therefore our research should never be construed as investment advice (“do your own due diligence”).