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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
First Quarter 2017

The US markets were up nicely in Q1 and set new record highs with large caps and technology stocks leading the way. The S&P 500 rose +6.03%, the Russell 2000 gained +2.47% and the Nasdaq jumped up +9.82%. Meanwhile, market volatility remained very low, hovering around 11% and much below the historical average of about 18%. Across sectors, Technology was up +12.6% while Energy lagged at -6.7% for the quarter..

The US economy continued to strengthen into 2017, prompting the Fed to enact its third rate hike since 2008 and, with signs of inflation becoming more evident, the yield on the 10-year T bond surpassed the yield of the S&P 500 for the first time since the credit crisis. Oversupplies in the oil and gas sectors are keeping energy prices in check, which helps keep inflation down. In Europe, the UK formally triggered Brexit with little reaction from the securities markets. Positive economic signs also came from Asia, with the Japanese economy strengthening and the Chinese economy coming off a slower period.

Momentum themes weakened this quarter after a promising start in January but Earnings Growth themes remained strong as investors respond to guidance from analyst earnings and growth projections. Fundamental Value themes, on the other hand, were also weak this quarter after a stronger performance in 2016.