The core ideas behind our research have their roots in academia, and continuous learning has been an integral part of the organization. We believe knowledge is the key to making better investment decisions.
Our research endeavours cover a wide spectrum of investment approaches as well as technologies to push the frontiers of what can be achieved. We help our clients succeed by helping them make more informed investment decisions, through application of superior technology to solve problems.
Following are some areas of investment research which have kept us busy recently.
Quantamental is a portmanteau, a word coined from a combination of quantitative and fundamental. It is a relatively recent trend in the asset management space. A quantitative approach analyzes vast amounts of financial and non-financial data to identify, using various combinations of criteria, a set of stocks that exhibit characteristics that can offer promising returns. It is less the accounting information that matters here; it is the skillful use of statistics and financial econometrics — and, increasingly, machine learning — across a larger universe of potential stocks.
At Algo One, we are working on the frontiers of the quantamental investment style and are pushing the boundaries of what is possible. Our model portfolios have delivered stellar returns, significantly outperforming all benchmarks. The success of our quantamental investing is rooted in the superiority of our processes.
Multi Asset Momentum
Study after study has shown that momentum investing typically is a market-beating strategy. There is evidence to show that the ability to earn premiums from momentum strategies has existed across asset classes and across geographies. Momentum investing has been considered to be not just one of the bigger challenges to the efficient market hypothesis, but possibly, the biggest.
Our work on short and medium term momentum across multiple asset classes, viz., equities, commodities, forex and fixed income has delivered superior risk adjusted returns. These models have been implemented across multiple geographies.
Besides, other investment styles to which we allocate research bandwidth are Mean Reversion Systems, Inter Asset and Intra Asset Statistical Arbitrage, Market Neutral Equity Models, Options Volatility Surface Modelling, etc.