Seek high quality stocks
We seek high quality and attractively-valued stocks that are efficiently profitable, have an improving growth outlook and that are gaining investor attention.
Proprietary investment process
We believe our proprietary investment process, grounded in our fundamental understanding of factor premiums, enables us to better exploit the behavioural biases that drive market inefficiencies.
Quantitative strategies
Our quantitative strategies work from the bottom up by first scoring each stock in the investible universe based on the factors that we have selected. The alpha score that we derive is our estimate of each stock’s future
return relative to other stocks in the same country-industry group.
Construct portfolio
From that estimate, we construct portfolios using mean-variance optimisation and look to maximise the expected risk-adjusted return of the fund relative to the benchmark, taking into account the expected impact of transaction
costs. When weighting factors, we acknowledge the strength of factor returns and the volatility (and correlation) of factors within peer groups (country/industry).
Returns
The improvement in returns that can be achieved through our type of factor investing over the related market capitalisation-weighted indices are self-evident.