ETMarkets PMS Talk | Gold allocation and dynamic hedging helped QAW beat Nifty in January selloff: Rishabh Nahar of Qode Advisors

In January 2026, Qode Advisors' Portfolio Management Service (PMS), known as QAW, outperformed the Nifty50 index by achieving a nearly 7% return amidst a challenging market that saw a 3% decline in the index. This remarkable performance is attributed to a strategic increase in gold allocation and the implementation of a dynamic hedging framework. Rishabh Nahar, Partner and Fund Manager at Qode Advisors, highlighted that gold served as an effective diversifier during the equity market downturn, while the hedging strategy provided protection for the equity portion of the portfolio. The dynamic nature of the hedging approach adjusts according to market trends, offering a balance of risk management and growth potential. Nahar emphasized the importance of a diversified, low-volatility strategy that adapts to varying market conditions, allowing for both protection and participation. The firm's asset allocation methodology is rooted in extensive testing and analysis, with gold and equities exhibiting complementary behavior, particularly in volatile periods. Since its inception in November 2024, asset allocation has emerged as the primary driver of alpha generation for QAW, showcasing the effectiveness of strategic, data-driven investment decisions in navigating uncertain economic environments.