While much economic activity appears to conform to the notion that investors behave rationally and efficiently, we believe that human behavior becomes markedly irrational at the confluence of uncertainty, risk, fear, and greed. It is at this juncture where we believe opportunities for outperformance exist. It is our goal to predict behavior that impacts the price of securities and capture the associated alpha by forecasting changes in analyst earnings estimate revisions and corporate earnings announcements.
"Successful investing is anticipating the anticipation of others."
Each of our internally managed equity strategies aims to outperform the respective benchmark while effectively managing risk through a diversified portfolio of alpha producing stocks.
Our objective is to identify securities that we expect to provide attractive risk-adjusted relative returns through behavioral valuation techniques. It is our goal to predict and capture alpha based upon favorable earnings announcements or upward earnings revisions.
Our process attempts to add alpha through stock selection, rather than sector "bets" against the benchmark. Thus, we have established a target number of positions for each of the sectors included in our universe.
Excess Return Time Horizon Objective:
Relative to the targeted benchmark over a 3-5 year period. This time horizon is relevant given that this investment process cannot eliminate the possibility of random events driving short-term performance.