Opportunity
The fund combines the two best performing styles over the last 25 years: value and momentum. “Momentum at a reasonable price” is an approach that allows the fund to tap into Canada’s most attractively priced companies regardless of market capitalization without overpaying for growth.
Strategy
After a significant amount of testing the drivers of historical returns, Hesperian's quantitative investing team has developed a proprietary quantitative approach that targets momentum at a reasonable price, rather than momentum at any price.
The on-going quantitative investment process starts with daily screening of over 600 Canadian equities for a number of financial and non-financial attributes. The next step is to apply a value overlay to filter the investment universe to 100 top names. The portfolio managers then construct a portfolio with a low price/earnings multiple, high return on equity, reasonable debt levels, and strong momentum characteristics.
The Norrep advantage
Proven formula for long-term success: Our research to test hundreds of quantitative investment factors has resulted in a disciplined quantitative investment methodology that places weight on the factors that have over time increased the likelihood of favourable investment outcomes.
Unique exposure: Norrep All Cap Quant is the one of a very few funds in Canada to offer a quantitative approach to all cap investing and perhaps the only fund to marry value and momentum. As a result, the fund rarely looks similar to the broad index and acts well as a complement to passive investment vehicles.
Disciplined portfolio alternative: A strength of quantitative investing is minimizing the role of emotion in the investment process. The methodology instills discipline to consistently place the appropriate weight on the factors that are responsible for long-term favourable outcomes.