Competitive Advantage

Increased breadth of coverage

A quantitative model can cover a far larger number of shares than a traditional analyst and can do so more quickly and accurately.

Internal consistency

Shares can be compared within a rigorous and homogeneous framework which may not be humanly possible - especially if a team of fundamental analysts is involved.

A Diversified Source of Alpha

To enhance reliability, we reduce the dependence on any particular factor by diversifying across more than 15 factors at any one time in each country-specific model.

Transparency

With a well constructed quantitative model the reasons for a forecast can be precisely attributed. This contrasts with the "warm fuzzy feeling" that may explain a human's recommendation.

Objectivity

A good quantitative approach exploits behavioural biases rather than being subject to them.

Repeatability

The effectiveness of the model over a particular period of time is not subject to the "mood" or time-varying enthusiasm of the fund manager.

A unique alpha diversifier

Given that traditional fundamental analysis is the most prominent investment philosophy applied and that our proprietary models are unique - they represent a different source of alpha from the norm. Furthermore, due to the style-adaptive native of the investment approach adopted it can perform during those periods when a particular fundamental style is out of favour.

Transparency

This allows useful interaction, data and 'special situation' checking with the funadamental analysis team.

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