Adding alpha by subtracting beta

In other words, they identify stocks that they expect to beat the market and combine them to create a portfolio. However, fundamental (discretionary) portfolio managers can leverage quantitative tools to help identify and lessen potential issues in their portfolio, while still maintaining their investment views and goals. In this paper, we’ll use a “real world” portfolio to illustrate how quantitative tools can improve a portfolio’s realized returns.

If you are a fundamental manager, read this paper to learn about:   

• How using risk models with portfolio optimizers can help you better understand and minimize portfolio risks 
• The role risk models play in understanding ex-ante risks  
• Ways to size assets in a portfolio while at the same time implementing portfolios consistent with your investment process

To learn more about our quantitative tools for fundamental managers, visit Axioma Factor Risk Models and Axioma Portfolio Optimizer solutions.