Core Concepts
Global Equity Management
Global Equity Management
We Manage Global Equity Holdings as a Direct Investor
Atlas manages global equity holdings for clients as the direct investor, at no additional cost to the client. This helps clients by avoiding another layer of fees, as well as the disappointment which often arises from investing with active equity managers.
The Atlas portfolios utilize a systematic quantitative approach to global equity management. The approach relies upon acclaimed academic research into which characteristics of equities are associated with better future performance. Using this approach, known as factor-based investing or smart beta, we seek to tilt towards specific factors historically associated with stronger risk-adjusted returns. Our implementation has multiple tiers – we make factor assessments for geographic regions, then for countries and sectors within those regions and finally among specific stocks within the countries or sectors.
Global Equity Management
Factor-Based Portfolios over Traditional Equity Indices
Traditional equity indexes are capitalization-weighted. Larger index weights are given to companies with greater market caps, regardless of company fundamentals or other factors that affect stock performance. Factor-Based portfolios, instead, have a proclivity toward one or more of a handful of factors that have been demonstrated to outperform traditional cap-weighted indexes over long periods of time.
GLOBAL EQUITY MANAGEMENT
The factors supported by extensive academic research, supplemented by proprietary research, and used by Atlas Capital Advisors are:
A multi-factor portfolio can provide a steadier course for investors, with a lower probability of long stretches of underperformance relative to single-factor funds. When correlations are sufficiently low, creation of a diversified portfolio can soften the cyclical behavior of individual factors across business cycles – offering the potential for lower volatility and more consistency of excess return above a cap-weighted strategy.
