ABSTRACT
We take an active approach to portfolio construction and risk management, which is enhanced by a quantitative discipline. In our process, we use quantitative models as the first step in developing a view on sectors, markets, styles, and, ultimately, on shares. We exercise judgment in terms of deciding the appropriate inputs for our models and, finally, in terms of the critical quality leadership decision. The last step is to form a view on the impact of medium-term reference-currency movements on equity performance. Here too, we take an active approach about the decision to hedge reference-currency strength, and we use quantitative-valuation tools to make the process easier and more disciplined.
