Enhanced Quantitative Equity
Aeon Investment Management Enhanced Equity Fund is based on a disciplined quantitative approach enables one to exploit sources of value in stock selection and trading. Strategies are designed, tested and managed on a quantitative basis, but always underpinned by a fundamental (qualitative) rationale. Rigorous risk management and qualitative portfolio analysis is needed to remove excessive risk. The fund’s quantitative strategy comprises a number of bespoke techniques which increases the level of potential outperformance, at a lower level of risk, by delivering alpha from a number of different sources.
The Enhanced Equity Fund combines 3 quantitative strategies:
- Fundamental Factor Model: We select securities using a quantitative model that is driven by carefully chosen fundamental factors. These fundamental factors are correlated with outperformance in a way that is consistent and explainable.
- Equity Alpha Strategy: Our equity alpha strategy targets stock specific return drivers that enhance our bottom-up stock selection process.
- Quantitative Trading Strategy: We overlay a quantitative trading strategy that seeks to earn additional return by taking advantage of short term mispricing.
Risk Management and Return Modelling
The portfolio is structured with overweight and underweight positions relative to the benchmark, which is dependent on the gap between the implied and sustainable growth rates. A real time model monitors the portfolio positions, and the effect of the sector and stock selection decisions on the performance relative to benchmark. The risk management framework encourages diversification and reduces the risk of significantly underperforming the benchmark.
Exposed to a fully invested, diversified equity portfolio.
Able to capture diversified sources of return.
Privy to a highly quantitatively skilled investment team.
All equity funds or products are managed according to the same philosophy and process, subject to client requirement and mandate constraints.
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