Alpesh B Patel OBEManaging Partner (UK), RootBridge Capital · Asset Management. Great Investments Programme. 18 Books, Bloomberg TV alum & FT Columnist, BBC Paper Reviewer; Fmr Visiting Fellow, Oxford Uni. Multi-TEDx. UK Govt Dealmaker. alpeshpatel.com/links Pro

Quantum Portfolio vs. Model of Models: Stock Strategy Explained #shorts

28 Jun 2026 · 2 min

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1:38

In this short commentary, the speaker contrasts two investment portfolios. The ‘Quantum’ portfolio is characterized by high volatility and a historical maximum drawdown of 36%, holding 19 stocks; an example is Marvell, which surged 64% but fell 27% in 2022, illustrating the portfolio’s erratic performance. By contrast, the ‘Model of Models’ portfolio is presented as a more stable alternative, historically delivering about 40% annual returns with a maximum drawdown of only 9%. Year‑to‑date it is up 11% despite 8 of its 20 holdings being down, and it posted a 61% gain the prior year. The speaker emphasizes that the Model of Models achieves lower volatility while still generating strong returns, whereas the Quantum portfolio’s upside comes with substantially higher risk.

Chapters

It's up a lot, hers, but that's an exception to the rule. Why is it an exception to the rule? Because it's just bloody Quantum. So 2026, the Quantum's portfolio, which you would not do because it's got a drawdown of 36% historically. It's got 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 stocks. Marvell was one of them I showed you earlier. That's up 64%. You wouldn't do that. She's got lucky. It was down 27% in 2022. Okay, so there you go. A more stable portfolio— clients get the names of all the stocks, obviously— a more stable portfolio is the— well, we've got something called the Model of Models. Okay, historically 40% per annum, drawdown 9%. But how's that done year to date? Year to date, it's up only 11%. Last year it was up 61%. It's only up 11%. And of the stocks in there, 1, 2, 3, 4, 5, 6, 7, 8 are down. So it's up 11% with 8 stocks out of 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20. 8 out of 20 stocks are down. The portfolio's up 11%, but it's a very low volatility one. Is that because it's draw— worst drawdown in 2022 even was only 9%, but historically it generates 40%. And as I said, year to date, it is up 11%. 8 of the 20 stocks are down. How it is. These things happen. It's all right.