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Inception Date

October 2009

October 2009

Objective

Long-term investment growth with a view to outperforming the MSCI World Index, MSCI Europe Index or S&P 500

Objective

Long-term investment growth with a view to outperforming the MSCI World Index, MSCI Europe Index or S&P 500

Key Features

Combines the benefits of passive and active investment management

  • Seeks to enhance returns through a dynamic weighting scheme and active positioning
  • Proprietary technical and fundamental signals drive active stock and sector positions

Draws on Winton’s experience in risk and portfolio construction

  • Combines volatility weighting and market-cap weighting to control active risk
  • Considers transaction costs and turnover in portfolio construction

Backed by Winton's quantitative investment research

  • A team of high-calibre scientists with expertise in pattern recognition techniques
  • Extensive research into systematic investing provides advantages across the investment process

Related Research

Improving on Market-Cap Weighting

The market-cap-weighted index is just a trading system that allocates according to size. Our research finds that volatility weighting has outperformed market-cap weighting, historically, and allocates risk across stocks more evenly.

By using a combination of volatility and market-cap weighting, our strategy seeks to enhance returns but control active risk.

The Hidden Costs of Index Tracking

Trackers have low turnover, but can suffer high slippage costs because they buy and sell index constituents inefficiently. Our research estimates an annual hidden cost of about 10 basis points for the MSCI World Index.

While our strategy pursues an active approach, its portfolio construction process is designed to limit transaction costs and turnover by avoiding unnecessary trading.

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