In an ever-expanding world of data, meaningful conclusions can be difficult to reach. Well documented, recurring behavioral errors drive irrational actions in financial markets–behaviors that are often contrary to investors’ best interests. Structural challenges also limit market efficiency. Together, these factors create mispricing on a global scale. This is where we find our advantage.
Acadian applies fundamental insights to find attractive and unique investment opportunities. Our decisions are made based on empirical evidence and our processes are repeatable and transparent, and risk control is a central focus. We measure success by how effectively we attain our clients’ desired outcomes. Responsible Investing is embedded in our investment approach.
A robust research function is critical to the enhancement of our forecast models and our clients’ investment results—through rigorous idea generation and ongoing refinement of existing frameworks. We believe in a diversified and scientific approach to innovation and focus our research efforts around four main categories:
Strategy – exploring alternative investment strategies, particularly areas of interest differing from, but often related to, our core equity investment model. Examples include Managed Volatility, Long/Short, and Multi-Asset Class strategies.
Signal Generation – identifying characteristics and attributes that seek to predict returns for individual companies, segments, and markets, as well enhancing our existing signals.
Signal Consumption – utilizing signals to construct portfolios and ensuring that we capture the optimal blend of exposures after accounting for real-world frictions (risk, costs, and portfolio restraints).
Process – improving the manner in which we conduct research, with past examples including the development of an open architecture supported by a robust data infrastructure, uniform programming languages, expanded backtest environment, dynamic analytical tools, and multiple forms of attribution.