According to QMA, equity returns on international markets are driven by two different sources: systematic factors and idiosyncratic risk. In the pursuit of these sources of alpha, investment managers generally employ one of the following approaches: (1) bottom-up (idiosyncratic risk), (2) top-down (systematic factors), or (3) a blend of the two. QMA describes how a bottom-up, quantitative investment process may be well suited to deliver consistent positive excess returns in international equity markets.
01 March 2016
Performance Consistency in International Equities—The Advantage of an Adaptive Quantitative Approach
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