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At AlbaCore, we focus on the long-term. As one of Europe’s leading alternative credit specialists, we invest in private capital solutions, opportunistic and dislocated credit, and structured products.
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Our philosophy is very simple. We are constantly searching for high quality businesses and when we acquire them, we will work relentlessly with them to create long-term sustainable value through innovation, ESG-led and proactive asset management.
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Leader in active quantitative equities across Australian equities, global equities, emerging markets and global small companies.
Backed by a unique blend of research, portfolio construction and risk management, focused on uncovering original insights and translating them into investment strategies that are active and systematic, aiming to generate alpha.
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At Stewart Investors, we believe in putting people first. Our investment world-view is of a series of partnerships – with each other, with our clients, with the companies we invest in, the people who buy their goods and services, and with the wider society in which we all live and work.
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Showing 1 to 22 of 22 results.
Rather than being polar opposites, we argue that both value and growth dimensions compliment each other in the valuation process. Growth considerations can be incorporated into traditional value investing. In particular, this paper focuses on a novel method of incorporating growth considerations into a common value workhorse - the dividend yield factor. We show detailed derivations from first principles, and as far as we are aware, this is the first time this methodology has been applied for dividend yield. Our new signal, growth adjusted dividend yield, outperforms ordinary dividend yield across most sectors globally.
We pose the question – what if we could develop a way of predicting which companies are more likely to be suffering distress, and which were not? The idea contains three parts: A. Certain individual observations or metrics can separately tell us about stocks that might – in the near future – find themselves in trouble. B. If we combine enough of these metrics together – without overfitting – we can get synergy between the factors. C. If we build a smart model that is designed specifically to target corporate distress, then we can apply and refine the predictions from the metrics in a better way.
In these articles the quantitative investment manager RQI Investors highlights a range of topical issues in financial markets and quantitative investing.
The performance of Australian small caps has lagged behind the ASX100 over the last decade leaving many investors questioning whether an allocation to Australian small caps is worthwhile.
Following a long period of underperformance, the value style has finally started to deliver strong returns. The drought has broken; long may it continue. Since November 2020, we have seen a strong and consistent rebound of the value style, while growth and momentum styles have trailed behind.
History sometimes provides an insight into the future, and last year was no exception. In this paper, the Realindex team look into the rear view to reflect on markets and macro themes in 2022, including how its strategies performed and how they are placed for the year ahead.
Recent actions by China in Hong Kong and rising geopolitical tensions between China and the US have resulted in the US taking a range of actions including the enactment of the Holding Foreign Companies Accountable Act. One potential consequence of this Act is the forced delisting of Chinese American Depositary Receipts (ADRs) on US exchanges.
In this research series we aim to determine which proportion of stocks which are good/bad value and good/bad quality.
The pricing phenomenon of the dividend run up – an opportunity to generate alpha?
Dialling down carbon intensity in portfolios could have less of an impact on risk and return than some might think, but the impact will vary depending on the sectors, styles and regions investors are weighted towards. Globally oriented investors can potentially reduce carbon intensity with a small addition of tracking error, but those wanting to address carbon intensity with a high exposure to Australian stocks might find it more difficult.
Late in 2021 we published a Realinsights paper on the long term relationship between inflation and Value style investing. In that paper, we focused especially on whether the recent (and forecast) inflation spike we were seeing on the back of the COVID lockdown and stimulus packages would drive outperformance of Value in the near future. A lot has happened since then. Here we revisit some of our thoughts from that paper, and look at the more recent performance of Value in the face of (a) the Russia-Ukraine conflict, (b) high realised and anticipated inflation, and (c) the risk of a global recession.
Value investing reflects the long term mean reversion of stocks. That is, expensive stocks will on average decline or revert, and cheap stocks will rise or rebound. But why does this happen, and under what circumstances will this effect be greater or lesser?
RQI Investors’ quantitative value strategies have a long history of outperformance versus peers and value indices. Our disciplined, highly active, and repeatable value investing process provides investors with a benchmark unaware, diversified equity portfolio that is cost competitive versus fundamental active stock pickers.
Diversified Alpha is a core systematic strategy designed to deliver consistent, risk-adjusted returns above the benchmark, with Environmental, Social and Governance (ESG) considerations embedded into the process.
Over the last 5 years, China has been on the rise within the Emerging Markets. We have all heard the story of the China Dragon and the impressive growth that the Chinese economy has been able to achieve relative to other large economies since the early 1990s. Even more recently as its growth has reduced it is still achieving more than double the growth of the United States. We believe the increase in regulatory risk from both the US and domestically in China has been a large contributor to this fall. The question for investors is this: will it continue and where does the next risk lie?
What are zombie firms? How can they affect Australian investors?
Leveraging our recent paper, ‘Reducing carbon intensity in portfolios: Better news than you think’, which analysed the investment impact of reducing carbon exposure versus the benchmark; we turn our attention to how we can reduce carbon risk in our Value strategies.
Discover how our equity managers with one of Australia's longest track records provide capital and income growth by investing in the Australian share market.
This final paper is somewhat shorter than the first two, and simply aims to look a little deeper into whether zombie firms appear in Realindex portfolios, and how a Quality factor acts as a repellent for these stocks. This is more important in Value-oriented portfolios as the potential appearance of lower quality “junk” firms, or even zombies, is higher here than in broader universes.
Incorporated in 1885, BHP began as a silver, lead and zinc mine in Broken Hill, Australia. Over the next century the company grew into one of the largest diversified resource companies in the world with operations including oil and gas, steel production and mining of a variety of commodities including copper, potash, coal and diamonds. It listed on the Australian stock exchange in July 1961, making it the oldest company currently trading, and throughout much of this time it has been the largest company on the ASX by market capitalisation (currently it is ranked third). In 2001 BHP announced it would merge with fellow resource powerhouse Billiton. Billiton also had a long history dating back to a single tin mine in 1851 before growing into a major producer of aluminium, alumina, chrome, manganese, steaming coal, nickel and titanium. The company was Dutch controlled from inception before being acquired by South African firm Gencor in 1994. As the world’s largest metals and mining corporation, BHP Billiton began trading in July 2002 and operates as a dual listed company (DLC) – a corporate structure in which two companies have merged into a single operating business but retain separate legal identities and stock exchange listings (in this case Australia and the United Kingdom ).
Under Executive Order 13959 (EO) , former US President Trump imposed sanctions against a number of communist Chinese military companies in response to perceived national security threats. The sanctions aim to ban US investment in companies developing technologies that will benefit the Chinese Military at the expense of the US.
Conventional economic theory assumes individuals are perfectly rational in their decision making under uncertainty. This is usually known as expected utility theory. It is different to prospect theory, which represents more how people actually behave (“irrationally”?) rather than how they are expected to behave.
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