Active managers who don’t innovate to maintain an edge underperform when their approaches become crowded. Investors subsequently suffer from below-market returns and higher fees.
Focused Quality is an innovative systematic active equity strategy that aims to deliver outperformance by identifying companies with outstanding, yet undervalued, intangible assets such as management quality, employee engagement, customer satisfaction, brand, and reputation.
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U.S.
ACWI-ex-U.S.
Focused QUality
AN INNOVATION IN ACTIVE INVESTING
Companies are increasingly valued according to intangible assets, which traditional financial metrics do not adequately account for. Strong intangibles enable companies to survive through downturns and thrive during strong economic conditions.
Focused Quality relies on a systematic model that uses alternative data to identify key intangibles that drive the most value. We repeatedly test for signal strength to find those most likely to facilitate innovation, revenue growth, and profitability.
We select 50-60 generally large companies based on the quality of their intangibles. The strategy is ESG-integrated, low turnover and high active share, aiming to out-perform its benchmark by more than 300 bps annually, over a market cycle.
