Alambic’s investment philosophy reflects the belief that behavioral biases and information asymmetries create small, predictable deviations in individual stock prices from fair value. Through back testing historical data, we have found that these biases are persistent and create investment opportunities that can be profitably harvested through a systematic process.
Alambic’s stock selection process systematically identifies opportunities based on valuation, quality and growth factors. Our proprietary factors were derived from decades of equity research experience and subjected to rigorous statistical and historical testing. Our models forecast future returns of every stock in our investible universe. These forecasted returns along with estimates of trading costs are then used as inputs into our proprietary portfolio optimizer which designs optimal portfolios that conform to specified risk tolerances.
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