Our proven quantamental process is a disciplined, high-conviction arbitrage of market inefficiencies. Quantitative screening and fundamental analysis are combined to constantly monitor and rank a large universe. Our rules and risk-based portfolio construction is focused on managing the unknown/un-owned, avoiding excess concentration and building portfolios that capture opportunities across a constantly evolving market universe.
In essence, this is how our team's investment acumen has developed over multi-decade careers. It is how we see the world put into a risk matrix designed to find Alpha when others can't. We are able to populate a portfolio risk-reward matrix across multiple dimensions--sector, region, currency, theme, and ESG. Fundamental research works with our quantitative analysis in developing conviction for portfolio inclusion and exclusion. The seasoned judgement of the investment team helps to contextualize, interpret and validate both fundamental and quantitative rankings.
The dual mandate of stewardship and returns are not incompatible. Our process ensures we are true to our values and client-focused mission. At Promethos Capital these objectives are not mutually exclusive.
|Investment Process Goals||Advantage||How|
|Avoid Alpha Myopia||Manage and Mitigate Bias||Systematic process to identify risks and opportunities, combined with disciplined buy/sell requirements|
|Capture Breadth of Market Opportunity||Objective relative ranking||Quantitative model tracking large universe of securities and ranking relative to sector, region and overall market|
|Take advantage of market inefficiency||Find arbitrage opportunities||Identify constantly changing opportunities in market complexity, investor sentiment and reactions|
|Evolve with Market Backdrop||Adapt to dynamic markets and rotations||Systematic market regime identification model senses and reacts to changes in market drivers by adaptive factor re-weighting and re-ranking|
|Constant Learning||Discover new opportunities||Process is sensitive to rapid evolution of industries and companies that create alpha opportunities|