HQK Insights
In an era where global markets are buffeted by shifting trade policies, rising geopolitical tensions, and unpredictable economic cycles, investors face unprecedented uncertainty. Just as one wouldn’t drive a car without insurance, safeguarding an investment portfolio against market turbulence is now essential.
HQK Capital has developed a proprietary trading strategy for all-weather investing, offering a unique and accessible approach that empowers every investor—not just the ultra-wealthy—to protect and grow their wealth.
By leveraging multi-asset diversification, dynamic risk mitigation, and cutting-edge technology, BBP HQK Capital’s Balanced Protected Fund stands out as a resilient solution in today’s volatile landscape, including the recent US-China tariff backtrack and the India-UK Free Trade Agreement.
This blog explores how HQK Capital’s expert-driven, democratized platform is redefining wealth management for all, with practical guidance on visualizing your portfolio’s performance.
Insuring Your Portfolio: Why Protection Matters More Than Ever
Most people wouldn’t dream of skipping car insurance, knowing the risks of the road. Yet, many investors leave their portfolios exposed to the financial equivalent of a multi-car pileup: market crashes, trade wars, inflation spikes, and global shocks. The current economic climate—marked by the US’s shifting stance on Chinese tariffs and landmark trade deals like the India-UK FTA—makes the need for robust portfolio “insurance” clearer than ever.
The Global Backdrop: Tariffs, Trade, and Uncertainty
US-China Tariffs: A Rollercoaster for Global Markets
The US’s recent decision to temporarily roll back tariffs on Chinese goods—from punitive highs to 10% for a 90-day period—has sent ripples through global markets. Stock indices from the S&P 500 to Hang Seng rallied on the news, but the relief is short-lived.
See how global markets responded to the US-China tariff rollback announcement in May 2025:
If a broader agreement isn’t reached, tariffs could snap back, threatening global supply chains, corporate profits, and consumer wallets.
The following charts illustrate the projected impact of tariffs on US GDP growth and consumer prices over the next several years:
The numbers tell the story:
US real GDP growth is projected to be 0.7 percentage points lower in 2025 due to tariffs, with a persistent long-term hit of 0.4%—equivalent to $110 billion annually.
Consumer prices have jumped 1.7%, costing the average household $2,800 more per year.
Payroll employment is down by 456,000 jobs, with rising unemployment rates.
India-UK FTA: A Comparative Shift in Global Trade Dynamics
Unlike the volatility and uncertainty introduced by the US-China tariff standoff, the India-UK Free Trade Agreement, signed in May 2025, represents a decisive move toward openness and mutual growth. While US-China negotiations have led to unpredictable tariff escalations and temporary rollbacks, the India-UK FTA slashes tariffs on 90% of British goods and 99% of Indian exports, setting a clear path for increased trade.
As a result, bilateral trade between India and the UK is projected to grow by 15% annually through 2030, with Indian exports to the UK expected to reach GBP 45 billion by the end of the decade. In contrast to the protectionist measures seen elsewhere, this agreement fosters new growth opportunities but also introduces heightened competition and currency risks for investors navigating both markets.
Projected growth in India-UK bilateral trade, driven by the new FTA, is shown below:
The Traditional Wealth Management Gap
Historically, banks and private wealth managers have reserved sophisticated investment strategies for the ultra-wealthy. Ordinary investors have been left with basic, inflexible portfolios that fail to adapt to changing market regimes. This exclusivity has left the majority of the population vulnerable to market shocks and missed opportunities.
Traditional Model:
High-net-worth clients receive bespoke advice, risk management, and limited access to alternative investments.
Most investors are offered cookie-cutter portfolios in other words template for asset allocation is similar across all the portfolios, and little active oversight. These portfolios weren’t able to keep up with the fair value from a time series perspective.
HQK Capital’s Formula: All-Weather Investing for Everyone
HQK Capital was founded with a clear mission: to democratize access to institutional-grade portfolio protection and growth. With over 100 years of combined asset management, trading, and research experience, HQK Capital and their partners have built a platform that empowers all investors—from individuals to family offices—to thrive in any market environment.
What Makes HQK Capital Unique?
Multi-Asset Diversification: Spreads investments across equities, bonds, alternatives, and real assets to minimize risk and capture opportunities in all economic climates.
Dynamic Risk Mitigation: Uses a proprietary “BEAR” engine to actively manage downside risk, ensuring portfolios are protected during market downturns while minimizing costs during rallies.
Global Reach: Invests across developed, emerging, and frontier markets, managing currency and geopolitical risks with expert oversight.
Personalized Approach: Each portfolio is tailored to the client’s goals, risk tolerance, and time horizon, with ongoing adjustments based on market conditions and predictive analytics.
Transparency and Accessibility: Provides institutional-quality solutions and reporting to all clients, not just the wealthy elite.
The HQK Balanced Protected Fund: Building an All-Weather Portfolio
The Three Pillars of Protection
HQK Capital’s Balanced Protected Fund is constructed using three core building blocks, each designed to perform in different market scenarios:
Comparison of diversified allocation of HQK’s Balanced Protected Fund to a traditional 60/40 portfolio:
How it Works:
Equities: Drive long-term capital appreciation during periods of prosperity.
Risk Mitigation: Acts as a “first responder” during downturns, using strategies like put options, managed futures, and dynamic cross-asset allocation to deliver negative correlation and limit losses.
Diversifiers: Include alternatives such as real estate, commodities, and hedge funds, which provide inflation protection and further reduce overall portfolio volatility.
Why This Matters
No single asset class performs well in every environment. By combining these elements, HQK’s all-weather approach ensures that portfolios can withstand inflation, deflation, recessions, and booms.
Deep Dive: Risk Mitigation Strategies Explained
HQK Capital’s risk mitigation process is rooted in decades of research and real-world experience.
Here’s how different strategies stack up:
Put Options: Offer immediate, reliable protection but are expensive to maintain, with a potential annual “drag” of over 10% if held continuously.
Fixed Income: Traditionally provided a buffer, but their negative correlation with equities is not guaranteed, as seen in recent years.
Managed Futures (CTAs): Can deliver positive returns in both bull and bear markets but require sophisticated management.
Dynamic Cross-Asset (BBP HQK’s BEAR Engine): Systematically targets negative correlation, adapting to changing market conditions for optimal protection at a reasonable cost.
Multi-Asset Allocation: The HQK Advantage
Personalized Client Assessment
HQK Capital starts every client relationship with a comprehensive assessment of financial goals, risk tolerance, and liquidity needs. This ensures that each portfolio is uniquely tailored, factoring in tax considerations and long-term objectives.
Strategic and Tactical Asset Allocation
Strategic Allocation: Spreads investments across a mix of traditional and alternative assets, continuously optimized using data-driven insights and sophisticated models.
Tactical Adjustments: HQK’s team actively monitors global markets and makes timely shifts to capitalize on short-term opportunities or mitigate emerging risks.
Global Diversification
Investing across geographies reduces the risk of overexposure to any single economy or sector. HQK’s experts manage currency and geopolitical risks, ensuring portfolios are resilient to localized shocks.
Rigorous Risk Management
HQK employs a robust risk management framework, including stress testing, scenario analysis, and ongoing performance monitoring. This proactive approach preserves capital while positioning portfolios for growth.
Democratizing Wealth Management: HQK’s Platform for All
Unlike traditional banks, HQK Capital’s platform is designed to serve all types of investors—not just the privileged few. Whether you’re an individual, a family office, or an institution, you gain access to:
Institutional-grade strategies and reporting
Transparent, ongoing risk management
Access to alternative investments and exclusive deals
A user-friendly digital platform for portfolio monitoring and analysis
Beyond Protection: The BBP HQK Advantage in Market Downturns and Recoveries
When markets are rising, it’s easy to focus solely on returns. But true investment wisdom is revealed when the tide turns. The history of financial markets is filled with periods—like 2008, 2020, and 2022—when traditional portfolios suffered severe losses and took years to recover. For example, during the 2008 crisis, the S&P 500 fell over 50%, and even portfolios with some risk mitigation still faced drawdowns of 15–30%. While such strategies helped limit losses, they often failed to preserve capital at fair value, exposing investors to prolonged market risk and slow recoveries.
What if your portfolio could do more than just cushion the blow? What if, instead, it was financially engineered to not only protect your capital during downturns but also to actively participate in recovery and outperform benchmarks as soon as the market turned?
That’s the philosophy behind the BBP HQK Balanced Protected Fund. This multi-asset, actively managed fund is purpose-built for all market environments—bull or bear. By combining traditional assets with advanced alternative strategies and a robust risk mitigation engine, the fund prioritizes capital preservation, maintains a low correlation to public markets, and ensures liquidity.
A key differentiator is the fund’s ability to shift from defense to offense: when markets decline, the risk mitigation sleeve activates, limiting drawdowns and preserving capital. As markets recover, the fund is structured to capture upside early, resulting in a faster and stronger rebound than conventional portfolios. This approach is reflected in the fund’s impressive Sharpe ratio of 1.20—meaning investors receive significantly higher returns per unit of risk taken—demonstrating both resilience and outperformance during turbulent periods.
In essence, the BBP HQK Balanced Protected Fund is not just about weathering storms; it’s about emerging stronger, faster, and ahead of the curve. For investors seeking true all-season protection and growth, this is the next evolution in portfolio management.
Performance: Higher Returns, Lower Risk
HQK’s Balanced Protected Fund aims for higher expected returns than equities alone, with substantially less volatility. Simulated and pro-forma results over the past 20 years show that this approach can deliver smoother performance across market cycles, outperforming traditional “60/40” portfolios, especially during periods of crisis (see “Performance” section in the attached presentation).
The following chart compares annualized returns, volatility, and drawdowns for HQK’s strategy versus traditional portfolios:
Conclusion: HQK Capital—Your All-Season Portfolio Insurer
In a world where financial markets are shaped by rapid technological change, shifting global trade policies, and unpredictable economic cycles, most investors still find themselves limited by outdated, one-size-fits-all solutions. HQK Capital stands apart by offering a platform that is not only built for today’s volatility but also engineered to adapt and thrive in tomorrow’s uncertainty.
What truly sets HQK Capital apart is our commitment to democratizing sophisticated wealth management—making institutional-grade solutions accessible to all investors, not just the privileged few. Our approach is rooted in deep expertise, cutting-edge technology, and a relentless pursuit of innovation:
Multi-Asset, Adaptive Portfolios: HQK Capital’s Balanced Protected Fund is constructed with a unique blend of equities, dynamic risk mitigation, and diversifiers, designed to deliver growth, protection, and stability across all market environments. This multi-asset allocation, powered by proprietary algorithms and quantitative research, ensures your wealth is not tied to the fate of any single asset class or economic regime.
Data-Driven, Human-Led: By integrating advanced artificial intelligence and algorithmic trading with the insight of seasoned professionals, we continuously analyze global markets, identify emerging risks, and capture new opportunities. This synergy of technology and human expertise enables us to deliver superior, risk-adjusted returns and real-time adaptability.
Personalized, Transparent Solutions: Every investor’s journey is unique. HQK Capital begins with a comprehensive assessment of your goals, risk tolerance, and preferences, crafting a portfolio that evolves with your life and the world around you. Our robust risk management framework, including stress testing and scenario analysis, ensures that your capital is protected—no matter what the markets bring.
Global Perspective, Local Relevance: With a presence in Luxembourg, Dubai, and beyond, and a team with over 100 years of combined experience, HQK Capital leverages its international reach to uncover opportunities and manage risks across geographies and asset classes.
Ethics, Excellence, and Teamwork: We operate with unwavering integrity, transparency, and a culture of collaboration. Our diverse team of technologists, traders, and advisors is united by a shared mission: to empower every client to achieve financial security and prosperity in any environment.
HQK Capital is not just another wealth manager. We are your strategic partner—bringing you the tools, insights, and resilience you need to preserve and grow your wealth, regardless of market turbulence. Whether you are an individual investor, a family office, or an institution, HQK Capital’s platform is built to be your all-season, all-access solution for financial success.
Experience the future of investing—where innovation, expertise, and inclusivity converge. Experience HQK Capital. To learn more, email us at info@hqkcapital.com or visit our website, www.hqkcapital.com.
Disclaimer
The views, opinions, and analyses expressed in this blog are those of the author and do not necessarily reflect the official position or investment strategies of HQK Capital. The content is for informational and educational purposes only and should not be construed as financial, investment, or professional advice.
While every effort has been made to ensure the accuracy and reliability of the data and information presented, no representation or warranty is made regarding its completeness or accuracy. Market conditions, economic factors, and investment outcomes are subject to change, and past performance is not indicative of future results. Readers are encouraged to conduct their own research and consult with a qualified financial professional before making any investment decisions.
HQK Capital and its affiliates assume no liability for any losses or damages resulting from reliance on the information provided in this blog.
For more details, please review our Disclaimer at www.hqkcapital.com.