Global Quantitative Equity Solutions

Intech specializes in delivering quantitative equity investment solutions for clients worldwide. Our investment activities are anchored in three fundamental philosophical principles: a steadfast commitment to the scientific method, a strategic focus on the pivotal role of volatility, and the harmonious integration of diverse sources for alpha generation. These guiding tenets form the bedrock of our approach, advancing precision, resilience, and innovation in serving our client’s diverse needs.

What We Believe

Scientific Approach is Foundational We anchor our approach in the scientific method, leveraging Stochastic Portfolio Theory as the mathematical framework for our evidence-based decision-making.
Volatility is a Crucial Alpha Catalyst We harness volatility’s ubiquity and inherent predictability, attempting to decipher market dynamics and reveal alpha-generating opportunities for investors.
Unifying Diverse Return Sources is Essential We unite portfolio optimization with fundamental analysis – both informed by volatility – to target alpha from systematic rebalancing and security mispricings.

The Intech Way

We believe the key to alpha generation lies in understanding two pivotal components of compound returns: stock effects and portfolio effects. Stochastic Portfolio Theory – the seminal work of our founder – provides the framework that facilitates the integration of these two essential return sources.

Our investment process leverages both aspects of this equation. We seek to use stock price volatility and correlations to create a portfolio that is more efficient than its benchmark (portfolio effects), prioritizing mispriced stocks with improving fundamentals and business prospects (stock effects). We then attempt to capture a trading profit by systematically rebalancing the portfolio to replenish diversification.  

Investment Solutions

Intech offers investors four investment platforms, which we customize to target benchmarks, geographies, return objectives, risk budgets, or sustainability goals. For every strategy, our investment team harnesses technology, data, and mathematical processes to pursue optimal returns for our clients – regardless of market conditions.

Enhanced Equity Enhanced equity strategies seek the benefits of passive investing while outperforming passive vehicles after fees. By limiting active risk, these strategies target a higher probability of excess returns and a more consistent range of outcomes.
Active Equity Active strategies attempt to offer a dependable source of excess return with a moderate – and predictable – level of active risk for the core of your portfolio. Clients use these strategies to diversify their alpha sources in multi-manager settings.
Defensive Equity Defensive equity strategies focus on managing absolute risk relative to equity markets, seeking upside participation and downside protection. Built on the principles of Stochastic Portfolio Theory, these strategies never rely on a low volatility anomaly.
Alternative Equity Alternative equity strategies seek to deliver positive returns over time, with low correlation to traditional and alternative asset classes. These strategies are intended to diversify traditional, long-only equity market exposures.