Fundamental
Investment Strategy
Tackling the day to day challenge faced by a fundamental investment manager.
Given that intrinsic value and risk assessment depend on analysts' methods and data sources, how do you ensure that:
Current and historical research is centrally available and isn’t held in Excel spreadsheets on drives across the company network.
Extra time is not being spent by analysts manually combining market data and forecasts to generate financial reports for discussion.
Integrating data and checking calculations isn’t wasting hours of analysts’ time,
Data sources can be switched without compromising the integrity of your current or historical data.
Analysts can access the data sources they need without delays.
Your company’s investment strategy (and its business IP) doesn’t reside with independent team members or rely on specific data providers.
Is a bespoke software solution the answer?
Very seldom, and not without big investment and its own risks. Many companies have tried solving these challenges with an inhouse development team. Given the complexity of the processes, the ideal development team needs an exceptionally good understanding of asset management to create a system that solves problems for analysts. If you can recruit such a team, the solution becomes dependent on the individual developers who build the system, creating problems when they leave. Furthermore, business logic often sits in code, making it hard for analysts to see what calculations and logic are applied to their models.
What would an ideal fundamental
investment process achieve?
Makes the financial models and business logic that underpin instruments easy to see and alter over time.
Automates the integration and homogenisation of research so that it can be compared.
Enables everyone in the team to access all current and historical research quickly and easily.
Integrates different data sources to do calculations, trigger responses or initiate business logic.
Allows analysts to access and upload data from their preferred software.
Makes it simple to change data sources, and combine market data with your analysts’ forecasts to generate models for discussion, and to change data sources.
Such a solution would optimise the process while at the same time capturing your company’s investment IP within a system independent of team members’ individual genius and data provider
What features would this management system have?
To achieve these goals, a management system must combine flexibility and automation with a structured data warehouse that ensures stability, integrity and consistency in your strategy.
Enter Quintessence… An elegant solution to the challenges most fundamental investment managers face, Quintessence is a platform built specifically to create custom-developed models. It combines the robustness of a data warehouse with the flexibility that you get from using Excel.
Stores models and business logic so that they are clear and accessible
Provides quick and easy access to analysts’ current and historical research
Works with Microsoft Excel, PowerBI, Python, R and many other software packages
Decouples analyst research from market data providers
Accommodates data, logic and IP changes over time
Ensures that data is sufficiently high quality to underpin good decision-making
Would you like to hear more? Contact us to get a private meeting with one of our consultants.