Prediction vs Inference
With the tournament drawing near, fans of the World Cup are starting to get excited. Thinking back to recent World Cups, 2010 was remembered equally for the piercing wails of…
Active management is at an inflection point
While passive management simplifies many aspects of investing, alpha generation through active management is necessary for organizations to meet their future obligations. After an entire market cycle of disappointment from active management, the question for institutional investors is how to generate alpha in a better way.
At Epsilon, we create investment strategies from big data signals generated by the entire active management community. We think this approach is uniquely suited to solve the active/passive dilemma. It provides hybrid flexibility: active orientation geared towards top quartile long equity alpha, married with lower fees, better transparency, and daily liquidity.
Our Objectives
Ultimately, we want to deliver consistent alpha to our clients. However, we believe that short-term performance is at the mercy of markets. Long-term results comes from process and a disciplined adherence to objectives:
Protecting Your Capital
We use rules-based approaches to avoid behavioral biases.
“The first principle is that you must not fool yourself and you are the easiest person to fool.” – Richard Feynman
A Truly Client-First Approach
Through transparency, liquidity, and low fees, we drive alignment of interest.
“We’ve had three big ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. Invent. And be patient.” – Jeff Bezos
A Truly Client-First Approach
Through transparency, liquidity, and low fees, we drive alignment of interest.
“We’ve had three big ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. Invent. And be patient.” – Jeff Bezos
Reducing the Randomness of Outcomes
We apply the scientific method to the investment process to deliver investment consistency.
“The plural of anecdote is not data.” – Marc Bekoff
The Epsilon Flywheel
So how do we deliver passive characteristics with active alpha? By removing the expensive pursuit of security selection. We do this through big data analysis of regulatory filings. We tap into the collective wisdom of all active managers to distill their cumulative research. This provides tremendous cost advantages for our products, which we can pass on to our investors. Our focus can then be on unbiased portfolio construction, the key ingredient in delivering consistent alpha.
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