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Quantitative Investment Strategies
Sabrient’s quantitative strategies are developed with our proprietary in-house testing and production platform, which we call FSYS. This platform allows us to create, build, test and execute powerful strategies for virtually any data set. We use the FSYS platform for rigorous, scientific backtesting of each strategy, with no regression or “curve fitting.” Asset managers use our strategies in long/short and long-only portfolios and apply them to sectors for unique sector strategies, such as sector pairs or enhanced sector rotation. We also use them to create specialty indexes.
VCU is an acronym for “value-change up.” Our VCU strategy is designed to identify stocks with strong current and future growth prospects, along with a favorable current and projected valuation with a high likelihood of earnings. The strategy employs a multi-factor model with metrics for GARP valuation, absolute growth, analyst consensus changes, and forensic accounting and governance, all of which work together to assess a company’s general outlook. This strategy is used in our co-branded Thomson Reuters/Sabrient Sensible Growth Indexes.
Our VOG Strategy is used to generate alpha in a long portfolio that emphasizes value, operations, and growth (thus the acronym “VOG”). Metrics include, among others, price and return ratios, changes in profit margins, accounting practices, and analysts’ projected earnings. Portfolios using our VOG strategy can be layered in manner that allows for option overlays, and the strategy is orthogonal to most other products.
Defensive Equity Strategy
Our Defensive Equity Strategy provides downside protection while still capturing upside potential. It is designed to populate a portfolio with stocks that appear well positioned to outperform the market during periods of weakness in the markets and/or the American economy overall, but still show strength during periods of market strength. The strategy underlies our Sabrient Defensive Equity Index.
Insider Sentiment Strategy
The Insider Sentiment Strategy is designed to take advantage of the actions of those who know a company best— corporate officers, directors, and Wall Street analysts. In other words, the insiders. The strategy tracks the purchases of a company’s stock—on the open market—by corporate insiders, along with upward revisions of earnings estimates by analysts who follow the company. This strategy underlies our Insider Sentiment Index.
We can use your own ideas with our internal testing to develop and backtest long-only, long/short, or enhanced index strategies based on a single filter or a combination of filters. We work with several hedge funds and portfolio managers in this way, effectively serving as their "outsourced" quant research staff. Contact us to talk about custom strategies.