Smart Beta portfolios with built-in protective layers to control tail risk.
Global Developed, Global Emerging.
Global Developed.
Global Developed, Global Emerging.
Global Developed, Global Emerging.
The debate between active and passive managers is never-ending. Both approaches have their advantages and their flaws: while active management in principle leads to better control of systematic and non-systematic risk, it also carries the risk of underperformance over certain periods of time when compared to passive management.
Smart Beta attempts to build a best-of-both-worlds scenario. First-off portfolios of securities are purchased based on specific methodologies regarding asset allocation and securities selection (fundamental, behavioral, quant/statistic). Secondly, derivatives positions re-arrange the portfolio risk-reward patterns in an attempt to deal with specific market downside risks or event / tail risk.
Inter-market analysis and the way related markets act in tandem – or, for that matter, not – is our way of looking at deep fundamentals connections. Of particular interest are the correlations between currencies and commodities and currencies and interest rate spreads;
Trends of related size (or degree) tend to develop in certain proportions to each other. We use several ratio analysis techniques for determining the projected extent of trend and counter-trend moves alike;
Momentum analysis is useful by allowing the analyst to identify in a statistically significant way the stage of trend development and / or the degree of trend completion or maturation;
From sentiment indices, consensus of bullish or bearish market opinion, implied volatility or open interest, sentiment analysis occasionally reveals situations of one-sided market opinion which are typically associated with market-turning points;
Market trends develop specific motive or corrective forms depending on whether they travel with or against the market’s OVERALL trend. These forms are important in the forecasting process because they allow the analyst to identify both the direction and the role (i.e. trend or counter-trend) of any given market move.
Value investing is an investment paradigm that involves investing in stocks that are overlooked by the market and are being traded below their true worth. A stock's true worth is its intrinsic value, which is commonly calculated using a DCF valuation model.
Quality investing is a strategy that focuses on identifying and investing in companies with strong, enduring fundamentals and a track record of consistent performance. It emphasizes buying stocks of businesses that are financially stable and profitable, often displaying steady growth and a low degree of earnings variability.
Analysis of market behavior is built on three premises: 1. market action discounts everything, 2. prices move in trends of certain durations and magnitude and 3. history repeats itself. What technical analysts attempt to do, in fact, is confirm the existence of certain trends and ride them until there are definite signs the trends have reversed.
Relative Strength analysis is an important part of technical analysis. While trend analysis attempts to determine the overall direction of an asset class, sector or security, relative strength analysis seeks to determine how the said asset class, sector or security has performed or is likely to be performing in the future against other asset classes, sectors and securities.
Quantitative analysis (QA) refers to methods used to understand the behavior of financial markets and make more informed investment or trading decisions. It involves the use of advanced mathematical and statistical techniques to analyze financial data.1 For instance, by examining past stock prices, earnings reports, and other information, quantitative analysts, often called “quants,” aim to forecast where the market is headed.
Unlike fundamental analysis that might focus on a company's management team or industry conditions, quantitative analysis relies chiefly on crunching numbers and complex computations to derive actionable insights.
Quantitative analysis can be a powerful tool, especially in modern markets where data is abundant and computational tools are advanced, enabling a more precise examination of the financial landscape. However, many also believe that the raw numbers produced by quantitative analysis should be combined with the more in-depth understanding and nuance afforded by qualitative analysis.