Quadratic Capital Management LLC
Quadratic Capital Management LLC is an investment advisory firm headquartered in Greenwich, Connecticut. Established in 2013, the firm manages investment products for institutional investors, including investment companies and pooled investment vehicles. Quadratic focuses on strategies involving interest rate and inflation-linked products, options, and macroeconomic trends. The firm is relatively small in size, with approximately 4 employees as of early 2025, and is known for managing the Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL).
Investment Strategy
Quadratic Capital Management specializes in systematic and options-based strategies focusing on interest rate volatility and inflation protection. The firm is known for employing derivatives, particularly options on US Treasury inflation-protected securities (TIPS) and other fixed income instruments, aiming to provide investors with positive convexity exposure and a hedge against rising rates or unexpected market shifts. Quadratic’s approach is research-driven and seeks to offer differentiated, non-traditional solutions to challenges such as inflation risk and yield curve changes. Their flagship ETF, IVOL, is constructed to seek to profit during periods of steepening yield curves and increased fixed income volatility.
Top Holdings
Equity Positions (2)
| Ticker | Security | Weight | Market Value | Shares | Avg Cost | Price | Change (QoQ) |
|---|---|---|---|---|---|---|---|
S SCHP | SCHWAB STRATEGIC TR | 98.14% | $317.1M | 11,767,045 | $28.89 | $26.95 | +$79.8M |
V VGLT | VANGUARD SCOTTSDALE FDS | 1.86% | $6.0M | 105,826 | $71.37 | $56.86 | -$1.8M |