We believe that the equity markets are inherently efficient. Market participants collect all available data, and stock prices reflect the collective wisdom of investors.

Notwithstanding, there are two exploitable opportunity sets in our view. The first is that while all information is available to all, the ability of most investors to quickly and efficiently assimilate vast quantities of data and apply it to the decision process is severely limited.

We believe our quantitative processes greatly improve our ability to collect, assimilate, and apply a staggering amount of data to the decision process. The second exploitable tendency in the market is that investors collect and evaluate not only quantitative data, but also qualitative data.

Qualitative data includes built-in investor bias’ and variables related to behavioral tendencies. We believe this tendency is exploitable through quantitative modeling.