Fundamental first principles, not dogma

We don’t accept the mutual exclusivity of qualitative and quantitative methodologies. In analysing securities, asset classes and our portfolios, we use both. Technology and well-constructed quantitative models dramatically reduce our ‘mean time to insight’ – or edge. Fundamental understanding is at the heart of generating investment insight.

By leveraging technology we expand our coverage of the investment universe. For every 100 stocks researched, investors may have a true edge on less than 20 securities. Perhaps less than 10! So, the challenge is to research both widely and deeply to find those few opportunities possessing a genuine investment edge.

We never lose sight of the fact our investment strategies have a specific role within our clients’ portfolios. We’re fortunate the experience of our founders extends beyond single asset class investing. This multi asset class experience provides us new insights and ensures we understand our clients’ objectives and can deliver strategies consistent with those goals.

A computer can’t ask the fundamental question, “Why?” But it is second to none in aggregating answers to such quantitative questions as, “What?” We find the use of quantitative methods serve as a useful check against the many behavioural biases human investors must remain vigilant against. Properly employed, we believe technology and quantitative models have a lot to contribute to investment decision making which is why we licence, adopt and develop technologies that help fulfil our potential to deliver better outcomes for our clients.

We believe in Kaizen – the philosophy of continuous improvement. Nobody said this was easy, but over time we have evolved and we will continue to evolve. We will challenge our own assumptions, observe reality and test our hypotheses, in the spirit of creativity and innovation we’ll keep an open mind. Quite simply, we’ll use all means available to deliver superior investment performance.