Core and Extended Alpha strategies
Our quantitative approach seeks to exploit predictable and repeatable market inefficiencies through the systematic application of factor-based investing.
We collate insights from fundamental research and incorporate these with statistical methods, aiming to identify turning points and value traps. Then, by proactively assessing the risk embedded in a stock’s forward earnings and taking account of temporal or transient risks, we seek to predict movement in market consensus and exploit opportunities from the behavioural biases often demonstrated by market participants.
Our strategies contain multiple stages of due diligence and tight portfolio controls with the goal of generating additional alpha while managing risk. Our limited drawdown profile demonstrates the success of our approach. Importantly, there is a strong focus on ESG integration, particularly during the portfolio construction stage.
Within capacity limits, we offer Core, Extended Alpha (Long/Short or 130/30) and Low Risk Active strategies to investors which can be customized by benchmark and risk appetite.
We believe alpha from predictable and persistent market inefficiencies in the Australian equity market can be harvested using a systematic, factor-based process, which is further enhanced both at a risk and return level by a fundamental overlay.