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Quotient Investors is recognized for its unique intra-industry investment approach. Quotient targets superior risk-adjusted returns across multiple U.S. products. Using a disciplined approach, Quotient incorporates value, growth, momentum, ESG and custom valuation models to identify the price drivers that are unique to each industry.

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Quotient provides US equity strategies for institutional investors that include Large Cap, Small Cap and MicroCap funds that are actively managed. The Large Cap strategies fully integrate Environmental, Social and Governance (ESG) criteria into the stock selection process.

Quotient Investors is the first manager selected by Strategic Investment Group for the CalPERS Manager Development Program II.

Quotient's experienced investment team comes from a major global institutional management firm and has track records dating back to 2000.

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Market Overview
Third Quarter 2016

The markets rose in the 3rd quarter with better performance coming from the smaller cap sector. The S&P 500 rose +3.85%, the Russell 2000 gained +9.05% and Nasdaq added +9.69%. Meanwhile, volatility in the market remained muted, with the VIX index hovering near 14% and below the historical average of 18%. Across sectors, the best performer by far was Information Technology, up +12.9% while the Utilities and Telecom sectors, full of dividend payers, slid more than -5% in the quarter. Overall, small cap growth did best in the 3rd quarter.

The US economy showed mixed signs this quarter, with improving employment numbers and household income but declining company profitability. At its September meeting, the Fed left rates unchanged, although the board was split on a decision to raise rates. The Fed left the door open for a hike at its November or December meetings. The G-20 meeting resulted in pledges from central banks to stimulate a sagging global economy. Both the Bank of England and the Bank of Japan pledged new stimulus programs. Some good news came from the energy markets, as oil stabilized around $50/barrel and OPEC pledged to limit output.

Although growth indices outpaced Value indices this quarter, there was no consistent style theme that dominated the period. Momentum fared best in July, but then fizzled. Value and Earning Growth themes, instead, remained flat for the quarter.