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Quantitative Strategies

 


Strategies

QAAM

Quantitative All Asset Model

Exposure to multiple asset classes (equities, commodities, and fixed income) and investing styles (quantitative equity, momentum, and trend following) in one model.

MORE INFO

What are Quantitative Strategies?

Quantitative strategies typically combine proprietary investment systems with systematic, rules-based decision making. Utilizing computers and advanced software to uncover and exploit historically statistically significant anomalies, quantitative strategies aim to produce superior risk-adjusted returns.

At Generation PMCA, most of our quantitative research is focused on what are known as fundamental factors, or specific attributes that stocks possess that may explain the cross-section of investment returns. For example, stocks with value attributes (e.g., low fundamental ratios, high dividend yield) may perform differently than stocks with growth attributes (e.g., high historical revenue growth) over a specified time frame.

Benefits of Quantitative Strategies

1 Systematic

Quantitative strategies are not dependent on ad-hoc idea discovery. Strategies are executed systematically with computer systems scouring the investment universe for the most optimal investment opportunities as defined by the strategy’s parameters.

2 Quantitative Strategies can Reduce Operational Risks

With quantitative strategies, investors do not need to worry about style drift or the departure of key managers.

3 Quantitative Strategies Attempt to Eliminate Behavioral Biases

Even seasoned investment professionals are prone to behavioral and emotional biases. The disciplined and systematic nature of quantitative strategies means that the day-to-day noise of market news is ignored. Sub optimal decision making during periods of extreme fear or greed is not possible as long as the strategy is being implemented as intended.

4 Transparency

The operational parameters of a quantitative strategy are well communicated to the investor and decisions are made in strict accordance with the parameters. This transparency, informational content, and faith in execution can help investors maintain confidence during periods of underperformance.

Quantitative Strategies

“Our four pillars are quantitative tools that we have developed to aid and complement the analysis, selection and trading of our investments. These proprietary tools are used in conjunction with our bottom-up fundamental research and overall macro outlook.”

RJ Steinhoff, CFA
Director of Research

Quantitative Strategies


Strategies

QAAM

Quantitative All Asset Model

Exposure to multiple asset classes (equities, commodities, and fixed income) and investing styles (quantitative equity, momentum, and trend following) in one model.

MORE INFO

What are Quantitative Strategies?

Quantitative strategies typically combine proprietary investment systems with systematic, rules-based decision making. Utilizing computers and advanced software to uncover and exploit historically statistically significant anomalies, quantitative strategies aim to produce superior risk-adjusted returns.

At Generation PMCA, most of our quantitative research is focused on what are known as fundamental factors, or specific attributes that stocks possess that may explain the cross-section of investment returns. For example, stocks with value attributes (e.g., low fundamental ratios, high dividend yield) may perform differently than stocks with growth attributes (e.g., high historical revenue growth) over a specified time frame.

Benefits of Quantitative Strategies

Systematic

Quantitative strategies are not dependent on ad-hoc idea discovery. Strategies are executed systematically with computer systems scouring the investment universe for the most optimal investment opportunities as defined by the strategy’s parameters.

Quantitative Strategies can Reduce Operational Risks

With quantitative strategies, investors do not need to worry about style drift or the departure of key managers.

Quantitative Strategies Attempt to Eliminate Behavioral Biases

Even seasoned investment professionals are prone to behavioral and emotional biases. The disciplined and systematic nature of quantitative strategies means that the day-to-day noise of market news is ignored. Sub optimal decision making during periods of extreme fear or greed is not possible as long as the strategy is being implemented as intended.

Transparency

The operational parameters of a quantitative strategy are well communicated to the investor and decisions are made in strict accordance with the parameters. This transparency, informational content, and faith in execution can help investors maintain confidence during periods of underperformance.