Factors: A Path to Long-Horizon Investment Success
For over 30 years Cadence Capital Management has been combining fundamental and quantitative analysis to build equity investment portfolios. Our investment portfolios are built with the belief that active equity returns are primarily driven by underlying market factors or styles.
At Cadence we aim to outperform our benchmarks by actively and systematically identifying attributes that are associated with higher returns using a rules-based investment approach. Our process is designed to deliver consistent, long-term excess returns, both absolute and risk-adjusted, on a cost-effective basis.
We focus on four core factors or styles: value, yield, quality and momentum, across three geographic regions: the U.S., developed international and emerging markets.
Defining Our Four Core Factors:
- Value: Equities that are perceived to be underpriced.
- Yield: Equities that have a premium dividend yield to the market.
- Quality: Equities that have sound financial health and earnings stability.
- Momentum: Equities that have upward trending prices and business growth.