Report From Chairman, President and Executive Director

Q — 50 Years and Counting!

Q, going on 50 years! We are proud that Q remains ever so strong and vital and continues to play an significant role in our ever-changing financial community! The fact that 50 years ago a group of investment professionals joined together to work cooperatively to improve the investment process was no small feat. The original goal was to explore the possible applications of “Modern Capital Market Theory (MPT)” (as theorized by Harry Markowitz) to real world investment problems. For 50 years the Q Group has evolved, offering a wide range of presentations from those working in the investment community and those in academia, thus fostering an active interchange of ideas, which is the primary purpose of Q.

With 141 member-organizations at the end of 2015, the Q group continues the interchange of ideas by holding semi-annual seminars. With focus and commitment, Q’s Program and Research Committees continue to identify research and insights reflecting the current thinking in the investment world and acknowledging individual contributions by awarding the Murray and Treynor Prizes. The Program Committee works tirelessly to bring new presenters to our seminars and challenge and engage the Q membership in an active exchange of ideas. We recognize and applaud each and everyone of the participants of the Program Committee, chaired by Brett Hammond, the Prize Committee, chaired by Jim Gordon, and the Research Committee, chaired by Joanne Hill, all of whom have contributed to these successful efforts.

Q’s 2015 Finances
While the success of any organization can be measured by the quality of its programs, the ability to maintain financial stability is of equal importance. Your Board of Directors takes this responsibility very seriously and, through the efforts and oversight of the Administrative Committee, we are pleased to report another year of strong results with year-end surplus of $141,474. This duplicates a similar surplus of $141,970 in 2014. After two years’ of surplus, Q Group ended 2015 with $663,234 in net assets that positions us to effectively weather any short-term financial challenge that may result.

Seminar costs, our largest expense, increased to $845,403 in 2015 as compared to $788,315 in 2014. Steadily increasing attendance and resulting increased food and Audio Visual costs were responsible for most of the increases. Our increasing attendance is an excellent and promising sign of Q’s ongoing health in the future! The remaining expense items for the year remain on target and within the budget. Travel, hotel and other costs incurred in connection with the Treynor research prize totaled $11,143—significantly less that the $50,000 that was formally allocated to research projects in prior years. A detailed financial statement is posted here on that outlines the organization’s income and expenses.

The Q Website
The need to stay current in delivering information and fostering communication with the Q membership and other individuals in the investment industry is critical to the success of any 21-century organization. Recognizing that the organization’s website is our most important communication vehicle, a new redesigned site was launched just before the New Year. The new site at provides updated information and news about Q programs, enhanced contacts and communication capabilities, detailed current seminar reviews, and a comprehensive archive. We invite you to explore the site and send us your feedback to help in making the website an even more valuable resource. We particularly welcome member contributions to our new resource section as we attempt to make that section a professional and education resource for those interested in quantitative theory and its applications.

Q Membership: now both “individual” and “corporate”
Most of our revenues come from our membership, which has grown to 141 member organizations. However, we continue to lose about 10 members each year. The member loss is due to a combination of mergers, corporate personnel changes, reorganizations and the natural ebb and flow in the quant investment approach. In a number of cases, individuals would like to continue their association with Q. Accordingly, the Q Board has voted to admit individuals as members without requiring a corporate or institutional umbrella.

There is no doubt that 50 years is a major milestone. Those of us who have been involved with the Q Group for most, if not all of its existence, take personal pride in its’ success. Q has contributed to the advancement of the financial services industry by maintaining itself at the “frontier of investment thinking.” As Q is poised to celebrate our 50th Anniversary, we share in its’ success with the numerous individuals whose contributions have been critical to this achievement. We could not have gotten to this point without those who have served on the Board of Directors, the Committees and the members of staff who have put in many hours in order to make Q a smooth running machine. We take this opportunity to once again, thank the members of the Q Group for giving us their ongoing support. Our efforts continue as we work to build on our 50-year history and plan for a vibrant Q Group for years to come.

Best Regards and a Happy Q Group 50th Anniversary,
Dale Berman
Founder and Executive Director

James L. Farrell

James Scott