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Philosophy Process Competitive Advantages

Competitive Advantages

Focus on Stock Selection Over 80% of the active risk in attributed to stock selection. Risk control minimizes active market risk, industry risk and style risk.
   
Intra-Industry Model Stock selection is driven by Quotient's insights into the valuation of companies operating within an industry. In total, there is a unique valuation model for each of 56 industries in the US Market.
   
Incorporate Growth and Value Factors The valuation models incorporate factors from multiple categories including value, growth, momentum, and custom valuation models.
   
Risk Budgeting The targeted tracking error is distributed in the portfolio according to the strength of the valuation models. The process will allocate more risk where the valuation models are more robust.