Adrian Banner, Ph.D.
At INTECH, we approach equity portfolio construction differently from most other managers – quantitative or fundamental.
Our process is based on establishing a portfolio of stocks with weights that differ from those of the benchmark, taking into account volatility and correlation characteristics. Stocks that behave differently from other stocks create an opportunity to capture their price movements by rebalancing stocks back to their target weights – systematically buying shares as stock prices move down and selling shares as stock prices move up, thereby capturing some of those price movements in a trading profit. Over time, this sophisticated ‘buy low/sell high’ methodology creates a stable and persistent positive alpha source.
At INTECH, we believe that our responsibility to our clients doesn't end with generating alpha. Because volatility can rapidly destroy wealth, we have specific risk controls embedded into our investment process to help protect our clients' portfolios through many different market cycles. We believe this is the real value we provide to our clients.
The INTECH Difference