Geneva-based asset manager Edmond de Rothschild Asset Management has expanded its quantitative management platform, with the launch of three funds and the recruitment of two fund managers.

The three systematic equity strategies are based on advanced mathematical models, while giving a central role to the fund managers’ judgement in defining and monitoring investment approaches.

The Quartz range, incorporated under Luxembourg law, aims to meet clients’ needs for defensive equities, multi-factor equities, 3D climate solutions and long/short strategies, complementing the actively managed funds already offered by the Group.

Two of the funds are core equity strategies. They are based on a strategy that is fully invested in equities, with a relatively low tracking error, the target level of which will depend on regions and market conditions. The strategy is diversified across equity factors (Value, Momentum, Quality, etc.) with the aim of generating the highest possible level of alpha for a given relative risk budget. Artificial intelligence techniques are integrated into the investment process to enhance the portfolio’s diversification and responsiveness. The strategy continuously adapts to changes in the market environment, with the aim of delivering ‘full-cycle’ performance with a beta close to 1.

The Defensive Global Equities strategy is an equity strategy designed to generate lower volatility and more limited drawdowns than those of traditional benchmark indices. This resilient performance is achieved without market timing decisions, as the portfolio remains fully invested in equities at all times. The strategy therefore aims to achieve a Sharpe ratio higher than that of its benchmark indices. Whilst maintaining its defensive characteristics, the team’s objective is to adjust the portfolio’s risk level in line with market conditions.