Summary

Summary

The philosophy underlying our active large cap equity portfolios centres on the belief that listed equity markets are relatively efficient and that the best way to generate consistent value is to use a systematic (or quantitative) approach combined with the judgment and skills of a fundamental overlay.

Proprietary empirical research and testing are key components of this approach. Through our own research, we seek to continuously evolve our investment process as markets change and existing opportunities are arbitraged away.

We believe the continual evolution of our investment approach through in-depth research has been critical to the team’s track record over the past 20 years.

Lachlan Davis, Head of Active Large Cap Equities

2020 was a busy year for research, with the team delivering four in-depth whitepapers covering the track record of Concentrated Managers, Low Risk Active Funds, the pit-falls of over reliance on Tracking Error and Expectations @ Risk.

This article summarises the key findings of these research papers and outlines the implications for managing active equity portfolios.