Quantitative Equity Management

We believe that:

• Over long periods of time, value investing produces superior investment returns
  
  
• Momentum and contrarian factors work well with value
  
  
• Factors that determine stock price performance vary across economic sectors
  
  
• A systematic model is needed to efficiently analyze the broad universe of stocks
  
  
• Factor-driven models can improve the timing of purchases and sales

Investment Approach

• We designed QVM as a fundamental, multi-factor model to:
  
  
  • Efficiently utilize the key measures of value and momentum
    
    
  • Employ a unique set of factors to select stocks in each sector
    
    
  • Moderate the value manager tendency of buying and selling too early
    
    
• All buy and sell candidates are monitored by our analytical team
  
  
• Portfolios are constructed on a sector neutral basis vs. the broad market

In summary, QVM is a multi-factor, bottom-up, sector neutral, stock selection model.

Investment Process Overview

Please refer to the following for a graphical representation of our complete investment process, followed by a brief description of each phase.