Smart Multi-Factor Equity Fund

Investment Philosophy

Aeon Smart Multi-Factor Equity Fund is based on a disciplined quantitative approach that enables one to exploit sources of value in stock selection and trading. Strategies are designed, tested and managed on a quantitative basis, but always underpinned by a fundamental (qualitative) rationale. Rigorous risk management and qualitative portfolio analysis is needed to remove excessive risk. The fund’s quantitative strategy comprises a number of bespoke techniques which increases the level of potential outperformance, at a lower level of risk, by delivering alpha from a number of different sources.

The Smart Multi-Factor Equity Fund combines 3 quantitative strategies:

  • Fundamental Factor Model: We select securities using a quantitative model that is driven by carefully chosen fundamental factors. These fundamental factors are correlated with outperformance in a way that is consistent and explainable.
  • Equity Alpha Strategy: Our equity alpha strategy targets stock-specific return drivers that enhance our bottom-up stock selection process.
  • Quantitative Trading Strategy: We overlay a quantitative trading strategy that seeks to earn additional return by taking advantage of short term mispricing.

“Man can believe the impossible, but man can never believe the improbable.” – Oscar Wilde