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Philosophy Process Competitive Advantages


Quotient Investors' philosophy is based on the belief that stocks in different industries respond to different sets of fundamental price drivers. Quotient finds that structural price inefficiencies and investment opportunities are more persistent at the industry level rather than at the market level. Quotient has developed a proprietary intra-industry process that exploits the various inefficiencies contained in stock pricings using a disciplined risk-controlled quantitative technique based on a fundamental and bottom-up approach. The goal is to generate a consistent pattern of excess return by focusing on risk-adjusted performance relative to a selected benchmark. The excess return is primarily generated from stock selection rather than market, industry or style factors.

Our Core Investment beliefs are:

- We can separate Alpha from Beta

- Alpha is more persistent and exploitable at the industry level rather than broadly across the market

- Risk control can minimize unwanted exposures

- We can target return and risk through most market cycles

- A focus on ESG integration provides opportunities not broadly recognized in the market