CCAT’s equity strategies apply the insights from 35+ years of systematic investing experience combined with the power of data to deliver results for our clients.
Data, computational power, and economic insight enable us to build portfolios by selecting from over 40,000 stocks forecasted within our investment universe. Sophisticated signals from innovative and empirically validated research use fundamental and technical market inefficiencies to predict future prices and generate active returns for our clients.
Extension strategies are a form of high-conviction investing. These strategies allow for limited shorting of securities and can produce higher risk-adjusted returns with the same amount of invested capital and net market exposure as long-only strategies.
Finance theory suggests investors should be compensated for holding riskier stocks with higher average returns. However, risk is mispriced and stock returns have been unrelated to their risks over a long history. Our pioneering research builds on the premise of a market return with less risk by seeking to add excess return through stock selection while limiting any exposures not central to risk reduction.
We have over three decades of experience applying our systematic investment process in nascent markets. As early entrants in Emerging and Frontier markets, we have been investing in Chinese stocks for over two decades and are now applying our considerable experience to a dedicated China A-shares strategy.
Read our latest original research on topical issues in systematic investing and asset allocation.
We encourage U.S. investors to look beyond their shores and consider opportunities in international equity markets. This piece explores several key factors related to valuations outside the U.S. and persistent growthy speculation that has particularly benefited the U.S.
In this piece, we argue that systematic extension strategies are an underappreciated and underutilized tool for asset owners seeking higher active returns. We demonstrate that relaxing the long-only constraint permits broader, deeper, and more precise exposure to the richest parts of the active opportunity set and, potentially, greater flexibility in risk control.
In this piece, we argue that in contrast to the steady stream of unfavorable headlines about China in recent years, the fundamental outlook for Chinese equities has improved relative to other EM equities.
The U.S. has been caught up by thematic sentiment, while EM has been trading more soberly based on fundamentals. As a result, fundamentally oriented active investing approaches have performed well in EM but have been challenged in the U.S. In this piece, we take a look at the near-term prospects for this trend.