Acadian has always believed that the broader the opportunity set, the greater the opportunity for active stock picking. We were among the first firms in the world to apply data and technology to the systematic evaluation of global investments.Innovative collaboration with our clients has driven product development throughout Acadian’s history – as our core non-U.S. all-cap equity strategy has been joined over time by small-cap, global, emerging, and frontier markets equity. The breadth and depth of our forecasting and portfolio construction tools have also supported the creation of other capabilities such as long/short, managed volatility, MACS, and ESG.
Attributes & ApproachWe leverage numerous behavioral factors grounded in sound investment theory and psychological underpinnings. Our factors are supported by specific observations from a range of disciplines, including statistical analysis, fundamental insights, economic science, and behavioral finance. Our stock forecasts incorporate multi-factor analysis from both bottom-up and top-down perspectives.
Acadian's investment process is designed to adapt to the current environment while incorporating historical trends. We adjust the weights on our stock selection signals to emphasize more heavily what we believe to be the most effective factors for the current market environment. Our approach is regimented and systematic, with the goal of avoiding the cognitive and behavioral biases that many investors exhibit. We modify our process dynamically, focusing on measures that make fundamental sense, especially those that seem underappreciated by other investors.
In building and monitoring client portfolios, Acadian applies a systematic portfolio management and oversight process. We focus strongly on implementation, taking into account a wide-range of data, including proprietary internal risk modeling, return forecasts, and transaction cost estimates, to achieve our risk and return targets. We believe this discipline gives us an edge over investors who are less rigorous in converting stock ideas into trades.
Rigorous oversight by our portfolio management team leads to further insights and collaboration with our research team that continually look to improve our process. Acadian's portfolio managers are the engineers of our process, continuously asking the right questions—constantly reviewing model output, implementation methods, live portfolios, and investment results.