QUANTITATIVE INVESTING
Data or Ingestion
We harness the global data deluge to fuel our investment engine. Beyond traditional financial metrics, we ingest vast alternative datasets—ranging from credit card transactions and geolocation information to audio from earnings calls and textual data from news filings. This massive intake is processed through our cutting-edge, cloud-based infrastructure, allowing us to decode information at an unprecedented scale. By leveraging this “race for insight,” we secure a competitive edge, turning raw, unstructured data into actionable inputs for our systematic models.
Alpha
Our quantitative strategies are designed to exploit deeply entrenched cognitive biases and market inefficiencies driven by human behavior. We utilize advanced machine learning and artificial intelligence to unearth fresh, uncorrelated alpha signals that traditional analysis often misses. By identifying these hidden nonlinear relationships and patterns, we aim to deliver superior risk-adjusted performance. Our disciplined, research-driven approach keeps emotions at bay, allowing us to consistently target sources of return that are orthogonal to existing factors and robust across various market conditions.
Optimization
We reject “black box” off-the-shelf optimization tools in favor of our proprietary portfolio construction algorithms. This gives us full oversight to systematically balance conflicting objectives, such as maximizing financial returns while integrating complex sustainability preferences. Our “3D investing” framework jointly optimizes for risk, return, and sustainability, ensuring that no single metric compromises the others. This precision allows us to build customized portfolios that align strictly with client values while aiming to avoid unnecessary trading costs and minimizing unrewarded exposures.
Risk
Risk management is not an afterthought; it is embedded in our “enhanced factor” definitions. We actively filter out unrewarded risks to ensure our exposure is pure and intentional. Our advanced modeling techniques including stress testing for unprecedented market events—allow us to predict volatility and manage tail risk more effectively than generic approaches. By adhering to a prudent investment philosophy, we protect capital against market turbulence, ensuring our portfolios remain resilient even when facing the “walking dead” of the equity market.
Execution
In quantitative investing, how you implement a trade is as critical as the idea behind it. Our systematic approach ensures disciplined execution that actively minimizes unnecessary trading costs and portfolio turnover. By utilizing proprietary algorithms rather than standard market solutions, we preserve the alpha generated by our research. This focus on efficiency results in better after-cost returns for our clients. We navigate liquidity constraints and market impact with precision, ensuring that theoretical gains translate effectively into realized performance in the long run.
Validation
Every strategy we deploy is built on a foundation of groundbreaking research and decades of academic rigor. We refuse to follow temporary fads; instead, we rely on strong empirical evidence and sound economic rationale. Our team rigorously backtests every model to avoid common pitfalls like overfitting or data snooping, ensuring that past performance is a reliable indicator of future potential. With a culture deeply rooted in independent thinking and transparency, we constantly challenge our own findings to validate their robustness.
