U-Quiet Compounding 125 Overview
| CAGR | 17.6% |
|---|---|
| Maximum drawdown | -9.2% |
| MAR ratio | 1.92 |
| History | 23 years (281 months) |
U-Quiet Compounding 125 is the UCITS version of Quiet Compounding 125, developed by Randy Harris of Dual Momentum Systems for investors outside the United States who buy UCITS funds rather than US-listed ETFs.
It is built exactly like Quiet Compounding 125: four strategies at 25% each, reset to equal weights every January, with only the Catalyst block able to use leverage. The difference is that each block is the UCITS version of its strategy. It is also U-Quiet Compounding with one change: its Catalyst block is U-Catalyst 200.
What the Name Means
| Component | Weight | Maximum notional | Contribution |
|---|---|---|---|
| U-Carrier | 25% | 100% | 25% |
| U-Catalyst 200 | 25% | 200% | 50% |
| U-GPMv | 25% | 100% | 25% |
| U-Triad | 25% | 100% | 25% |
| Total | 100% | 125% |
That 125% is the notional maximum. Average notional over the full record has run about 106%, and leverage has been deployed in 71 of 281 months, the same months as Quiet Compounding 125. Most of the time the portfolio holds exactly what U-Quiet Compounding holds. Because weights drift between January resets, a strong run for U-Catalyst 200 can carry actual exposure above 125% until the next reset; the highest on record is about 133%.
What It Holds
| Block | Reads | UCITS change from the US version |
|---|---|---|
| U-Carrier | High yield credit spread | No long/short equity fund; more managed futures |
| U-Catalyst 200 | Growth and breakeven inflation, with Smart Leverage on technology | Intermediate Treasuries in place of the tail-risk fund; 2x Nasdaq 100 UCITS fund for leverage |
| U-GPMv | Breadth and correlation across eleven risk assets | None to the rules; Pacific held as a fund pair |
| U-Triad | Relative momentum in three sleeves | No long/short equity fund; mid cap for mid-cap value |
Each strategy's page lists its UCITS funds, with tickers and ISINs. Because the blocks overlap, a fund can appear in more than one of them; the portfolio's holding in a fund is the sum across blocks. U-Catalyst 200 is the only block that ever levers, through the Amundi Nasdaq-100 Daily (2x) Leveraged UCITS ETF, which trades in euros.
Performance Highlights
May 2003 through September 2026, net of trading friction:
| CAGR | Max Drawdown | Ulcer Index | UPI | |
|---|---|---|---|---|
| U-Quiet Compounding 125 | +17.6% | -9.2% | 2.15 | 7.44 |
| Quiet Compounding 125 | +18.4% | -9.8% | 2.22 | 7.58 |
| U-Quiet Compounding | +15.5% | -6.7% | 2.06 | 6.73 |
| S&P 500 | +11.3% | -51.0% | 11.72 | 0.82 |
The Ulcer Index measures how deep and how long drawdowns were, not just the single worst one: lower is better. UPI (Ulcer Performance Index) is return above T-bills per unit of Ulcer Index: higher is better.
U-Quiet Compounding 125 gives up about 0.8% a year to Quiet Compounding 125, with a slightly shallower worst drawdown and a slightly lower Ulcer Index, so risk-adjusted return is close. Against U-Quiet Compounding, the leveraged Catalyst block adds about two points of return a year for a worst drawdown that still stays in single digits. The history begins in 2003 because that is when U-Catalyst's breakeven inflation series starts.
Notes for Investors Outside the US
- Results are in US dollars. The strategy is calculated on the history of the equivalent US funds, in US dollars. If you measure your portfolio in pounds, euros or another currency, your results will also move with the exchange rate.
- Why UCITS funds. Irish-domiciled UCITS funds are the standard way for non-US investors to hold US markets. They often receive US dividends at a lower withholding rate than a non-US investor holding US-listed ETFs directly would, and they are not US assets for US estate tax purposes. Rules vary by country, so check with a tax adviser where you live.
- Gold is held as an ETC. UCITS rules do not allow a fund that holds only gold, so gold is held through the iShares Physical Gold ETC, a security backed by physical gold. It is not a UCITS fund, but it is UCITS eligible and widely available to investors in the UK, Europe and elsewhere.
- Leveraged funds reset daily. The 2x UCITS funds target twice the daily return of their index. Over longer periods their returns can differ from twice the index return, especially in volatile markets, which is why Smart Leverage holds them only in defined recovery phases.
- The 2x Nasdaq 100 fund trades in euros. The Amundi Nasdaq-100 Daily (2x) Leveraged UCITS ETF has no London or USD listing. It trades as LQQ in Paris and Milan and as L8I7 on Xetra.
- Listings. The tickers above are the London Stock Exchange USD lines unless noted. Most of the funds also trade in London in pounds and on European exchanges in euros, under the same ISIN, which is the surest way to find the right fund at any broker.
Who It's For
U-Quiet Compounding 125 is for investors outside the US who value the broad diversification of four independent strategies, want a little more return than U-Quiet Compounding, and are comfortable with some leverage, but not too much, all from UCITS funds and a physical gold ETC.
Past performance, including backtested results, is not indicative of future results. Backtested performance is hypothetical, does not reflect actual trading, and benefits from hindsight in the selection of strategy rules. U-Quiet Compounding 125 is calculated on the history of the equivalent US-listed funds; the UCITS funds track the same or closely matching indexes but their returns will differ, including from fees, tax treatment and currency. Portions of the long-term history rely on reconstructed proxy data for funds that did not exist for the full period across its four strategies, including the leveraged fund. Investors should carefully consider their risk tolerance and consult with a financial advisor.
For the latest details, visit www.DualMomentumSystems.com