How We Invest
Our investment process runs to a monthly cycle in three stages. First, a systematic scoring and ranking of our entire 4,500 stock investment universe relying on proprietary algorithms and much data. Second, a qualitative due diligence stage carried out by our experienced investment team on a subset of high scoring names. Third, a portfolio construction stage bringing to bear the judgement of our experienced team aided by best in class risk analysis tools.Learn More
In order to gain inclusion in our investable universe of approximately 4,500 stocks globally, 3,000 international and 1,500 emerging markets, stocks must meet minimum market capitalization and liquidity criteria.Start the Process
We then mechanically screen and rank each company in our investable universe on the basis of each of our four target criteria. We are interested in the central core of names which most closely resemble our ideal company.Next Step
Team Due Diligence
At this stage we consider stocks not currently owned that are scoring highly and/or are felt to be good diversifiers for our current portfolio as well as those current holdings where the scoring evidence has deteriorated. Each member of the team independently reviews the whole due diligence list, focusing only on the four relevant characteristics and reorders the list in his/her own order of preference. Combining the individual rankings creates the combined team list which forms the basis of that month’s trading decisions.Next Step
Using the output from the team due diligence work, and considering trade suggestions generated by the Axioma portfolio optimiser, each member of the team inputs his/her individual trade suggestions which are then discussed and agreed at the final portfolio construction meeting. The resultant basket trade effectively refreshes our portfolio with the most recent evidence both in terms of the four characteristics we target and in terms of the latest covariance matrices generated by our risk model.