About Us

Epsilon is an asset management firm which pursues fundamental stock-selection alpha through a systematic investment process.

We use data science to establish rankings of domestic equity securities, akin to factor investing.

Unlike a value or momentum factor, our rankings are based upon the skills of the universe of active managers, as demonstrated by the securities they own.

We access manager position-sets through public regulatory filings and test their portfolios for predictive signals.

We are quantitative in approach, but invest in low-turnover, fundamentally oriented securities.

Our team came from Novus Partners, an industry leader in position-level data analytics for active managers.

The Epsilon team has spent years working with large institutional investors to test analytical frameworks for predictive signals in active managers.  We have also spent over a decade focused on this data-set and the intricacies involved in optimally extracting its investment signal.

Epsilon Asset Management
767 3rd Avenue, 38th Floor
New York, NY 10017

Quotes We Like

We are prone to overestimate how much we understand about the world and to underestimate the role of chance in events. – Daniel Kahneman

Our Principles

  1. Fundamental investment skill is alive and well, but investment managers have entered a new era of competition. Yesterday’s alphas are rapidly becoming today’s betas, and the need to construct calculated portfolios with a sober understanding of behavioral biases is more important than ever.
  2. The application of core quantitative investment principles to fundamental security analysis provides an opportunity for both managers and capital allocators to “have their cake and eat it too”; escaping the stranglehold of margin compression and heightened competition. This is achieved by circumventing aspects of the investment process which have traditionally been the high cost of doing business.
  3. The need for active managers to reduce the impact of randomness in outcomes is increasingly vital in a hyperactive world where the baseline is a free, liquid, passive alternative. Big data and statistical inference offer opportunities to produce portfolios with superior and repeatable outcomes.

Not only do we want to control for our own behavioral biases, we want to provide powerful incentives to allow our investors to break away from their own behavioral biases.

The Epsilon Flywheel

Using Regulatory filings as our source of security-selection allows us to circumvent the expensive and competitive input costs associated with fundamental underwriting of investment ideas.
Instead, we rigorously test the predictive value of all managers' filings, and create rules-based portfolios that distill the best of their collective research.
The savings we generate through a more efficient process are passed on to clients. Our process enables daily liquidity and full transparency, driving alignment.
This creates organizational scale which allows us to reinvest in our core competence and spin the flywheel.

Our Team

Faryan Amir-Ghassemi

Faryan Amir-Ghassemi

Co-founder

Faryan Amir-Ghassemi is a founder of Epsilon Asset Management. Prior to Epsilon, he worked at Novus Partners starting in 2012, where was a Director of Analytics and Quantitative Investment Strategies. In that capacity, he worked with clients ranging from endowments and multi-billion dollar family offices to fundamentally focused hedge funds, creating solutions around portfolio optimization and investment strategies. Prior to joining Novus, he was a Hedge Fund Analyst at Cambridge Associates, focusing on hedge fund research for the firm’s institutional investor clients. Prior to joining Cambridge, he worked at Crowell & Moring as a Legal Assistant. Mr. Amir-Ghassemi graduated from the University of Maryland with a B.A. in English Literature, earning an Honors Citation in his major and a Scholar’s Citation in Business, Society and the Economy.

James Adam Lavin

James Adam Lavin

Co-founder

James Adam Lavin is a founder of Epsilon Asset Management. Prior to Epsilon, he was at Novus Partners, where he helped grow the company from a consulting start-up to a Series C venture backed analytics firm with clients representing $3 trillion of assets under management. During that time, Mr. Lavin brokered relationships with channel partners and helped grow the client base by several hundred percent. Prior to joining Novus in 2009, he was the principal and founder of Alternative Investment Management, a multi-billion dollar fund-of-hedge-funds. He has worked with several multi-billion dollar family offices throughout the years, specifically in the field of constructing hedge fund and private equity portfolios. Mr. Lavin graduated with a degree in Business Administration from Tulane University.

Michael Perlow

Michael Perlow

Co-founder

Michael Perlow is a founder of Epsilon Asset Management. Prior to Epsilon, he worked at Novus Partners, starting in 2013, and served as a Quantitative Developer specializing in investment strategy creation, quantitative analysis, and software development. During this period, he created much of the infrastructure for testing quantitative investment strategies, including backtesting engines. He has focused specifically on extracting investment signals from public regulatory filings using advanced statistical methods. Before joining Novus, Mr. Perlow was at Ipreo where he predicted trends in active managers' holdings using brokerage flow data. Mr. Perlow holds a Bachelor of Arts in Mathematics and Economics from Skidmore College.

Chuck Soderstrom

Chuck Soderstrom

Co-founder

Chuck Soderstrom is a founder of Epsilon Management. Prior to Epsilon, starting in 2005, he served as a Managing Director and Head of Operations for Impala Asset Management, a multi-billion dollar long/short equity hedge fund founded by Bob Bishop. Prior to Impala, Mr. Soderstrom was a Senior Managing Director at Bear Stearns from 2002-2003. In 2000, he co-founded and managed Buena Vista Partners, a long/short equity hedge fund. Prior to Buena Vista, Mr. Soderstrom was a Managing Director at JP Morgan Securities, where he helped build and ultimately ran their 300+ person U.S. Institutional Equities business overseeing sales, trading, and research. Prior to running U.S. Equities, he built and ran their Chicago Equities office. From 1987-1991, Mr. Soderstrom worked for Salomon Brothers. He received an M.M. in Finance and Marketing from the Kellogg School of Management at Northwestern University and a B.S. in Industrial Management from Purdue University.

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