Informed Momentum™

We believe the momentum premium can be effectively delivered through our Informed Momentum™ investment advisory services.

Investment Philosophy

We believe the momentum premium can be effectively delivered through our Informed Momentum™ investment advisory services. This belief is supported by three central tenets:

Momentum

Momentum is a significant source of alpha

Empirical evidence demonstrates that the momentum premium is both significant and persistent. We believe momentum’s strength as a source of alpha is due to its inherent adaptability through time and its ability to signal change/improving company growth prospects.

Rationale

Inefficient response to change creates the opportunity

We believe that investor behavior best explains the momentum premium and alpha creation. Namely, investors display consistent behavioral biases around change culminating in a chronic underreaction to new data/developments. This underreaction creates expectation gaps which are exploitable. Further, we believe that focusing on innovation and reinvention at the company level powers the changes that enhance behavioral biases. In addition, these changes power improving financial performance, thus reinforcing the prospects for continued outperformance.

Risk Management

Actively addressing risk retains alpha

We believe that alpha can be fleeting as investor expectations inevitably shift through time. This dynamic requires disciplined and sustained action on portfolio constituents to preserve outperformance. Further, we believe intended and compensated portfolio exposures must be preserved to generate and retain alpha.

Informed Momentum

Investment Process

We specialize in identifying alpha opportunities created by companies benefitting from positive change through innovation and/or reinvention. We believe our systematic approach to discovering ideas, focused analysis, timely decision making and efficient implementation are the keys to maximizing available alpha and achieving consistent results.

All of our strategies employ the same daily, bottom-up investment process that is disciplined and objective. The process consists of four distinct actions – Discover, Analyze, Challenge, and Execute.