By: Taygeta Quantitative Research  05/12/2011
Keywords: Portfolio Managers, Mathematical Models

What we do

Why Quant-Aided Investment Management?

In traditional equity management, the main focus is on stock selection and macroeconomic analysis. Looking at fundamentals, portfolio managers often conclude that there will be a transition from state A to B, but the path is uncertain.

Quantitative models represent essential new tools that the traditional fund manager can use to shed light on the path or short/medium term dynamics of the system in its transitions.

Portfolio managers often need to decide when to participate, and when not to, in a market / sector / risk. Fundamental analysis and ability to identify good entry and exit points (risk - reward opportunities) are equally important.

We propose the use of proprietary risk-reward indicators which represent the result of many years of specialist work in this area.

Hedge Against the Risks of Behavioural Finance

Investors are often most exposed at market peaks (crowding-in) and least exposed at bottoms (crowding-out), as it is easier to follow the crowd when making decisions, rather than being contrarian.

The crowd unbalanced emotions of greed and fear, however, often represent a major determining factor of poor decision making by the un-systematic investor.

Mathematical models exploit behavioural finance effects by introducing objective, or data driven (hence unemotional) indicators to evaluate and assess risk-reward opportunities in the markets, with an information advantage.

Not Yet Another Technical Analysis Newsletter

Our service is not another technical analysis newsletter. Our indicators are proprietary and their results are only distributed to a small number of clients with whom we have established a relationship of mutual trust and respect.

Keywords: Mathematical Models, Portfolio Managers

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