Our approach to equities is rooted in the practical application of advanced financial theory. Academic research in the 1990s identified the «Minimum Variance» anomaly, a persistent market inefficiency which demonstrates that markets reward investors who avoid risk, and that capitalisation-weighted indices are inherently inefficient. After conducting our own research, we created a proprietary methodology and a systematic, quantitative approach to exploit this anomaly.

Systematic, disciplined process. We seek to obtain a higher return with lower volatility than the benchmark over a three- to five-year period. We achieve our investment objective by creating an optimally efficient portfolio through a highly active and systematic process, combining quantitative modeling with additional techniques to minimise portfolio risk. We then actively manage portfolio risks through ongoing monitoring, rebalancing and reoptimisation.

A distinctive risk and return profile. Our portfolio construction process is purely objective, and produces a portfolio that has no style or capitalisation biases, with low correlation to indices and other active equity strategies.