We see investment potential in small but widespread mispricings of securities.
Active strategies can play a key role in meeting investment objectives. Asset prices occasionally deviate from values implied by underlying fundamentals, and active management can improve returns by positioning a portfolio to profit from an eventual return to fundamentals. These deviations from fair values create opportunities that our processes are designed to identify and exploit. Because these are patterns that persist over time, rather than fleeting trends, we are confident that our processes can continue to outperform over the long term.
Our people make our process work.
Our bottom-up approach combines the principles of valuation theory and behavioral finance with the skill and judgment of our investment professionals. Team members-- averaging 20 years of investment experience and bringing diverse perspectives, including university professors, engineers, physicists and economists -- have worked smoothly together through a wide range of market conditions.
We apply the same rigor to risk control as we do to alpha generation.
Our proprietary optimization process generates diversified portfolios across a large number of stocks. And by constraining risks such as size, sector/industry, and deviation from benchmark, while vigilantly focusing on liquidity and transactions costs, we believe we can target alpha generation more effectively.
Our research agenda is responsive and robust.
QMA's investment approach is sensible and sound-but not static. Through ongoing research, we continue to find ways to enhance the adaptive nature of our investment processes.
We don't believe "one size fits all."
Our process is highly flexible, accommodating many benchmarks and investment restrictions. Expected risk and return can usually be tailored within the process to meet each client's specific needs.
Significant size—but personal attention.
QMA maintains a sizeable presence in institutional investment management. However, we are not too large to provide tailored and highly responsive client service.