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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
Second Quarter 2017

US markets hit record highs once again in the second quarter, particularly boosted by strong performance from the Tech sector. The S&P 500 gained 3.1%, the Russell 2000 advanced +2.5 and the Nasdaq moved up +3.9%. Market volatility, instead, moved lower averaging near 12% and well below historical levels. This quarter, the Health Care sector was the biggest gainer at +7.1% while Telecom sectors dragged with a -7.1% return. Overall, Growth outpaced Value and Large Caps did better than Small Caps.

The US Fed raises interest rates for a fourth time in June as the US economy continues to grow at a slow pace. The Fed also shifted its stance from stimulus to maintenance this quarter and begun to discuss a reduction of its huge balance sheet. A continuing oil glut helped keep inflation low but at the same time it depressed earnings in the Energy sector. Meanwhile the Financial sector benefited from investor confidence that less regulation in the future will translate into higher profits. In Europe, the picture brightened with pockets for growth prompting the European Central Bank to talk about ending its stimulus program. In addition, fears over Brexit impacts abated and the Greek economic outlook improved. Finally, in Australia, China and Japan, economic growth picked up prompting the IMF to raise its global growth forecast.

In the rising market, all investment themes performed mediocrely with Momentum doing slightly better than Value and Growth themes. Indeed, the best strategy this quarter focused on sector rotation.