It shapes our research as surely as it guides our
strategy formation and daily tactics. It is a point
of view. Our approach to investing is best
described as “Empirical”, which means, based
on the experience.
We observe and study markets as integrated
experiences ― phenomena. We look at them
in detail and over long periods of time to learn
how they really behave. Our investment practice
evolves from a study of actual market forces.
Price
The Foundation of Our Approach We believe that price reflects all relevant
information about a security at any given
point in time. Using complex systems for
signal identification and opportunity location,
we examine prices for subtle and often
well-hidden relationships within thousands
of pieces of raw data. We seek to separate
market noise from useful data and to find
opportunities with favorable risk characteristics.
Our investment decisions are implemented
without subjectivity or emotional biases.
We don’t second-guess ourselves and we
don’t make exceptions, unlike many
discretionary investors.
Being disciplined and systematic also means
that we do not use opaque or mysterious
analytical processes. Our approach is lucid
and declarative, allowing us to make periodic
adaptations to changing market conditions.