Acadian believes that behavioral biases and institutional constraints result in market inefficiencies, which we seek to exploit in a systematic fashion.  Our systematic process utilizes Acadian’s disciplined, transparent, and research-oriented approach.  The MACS investment philosophy is to convert, in a rigorous manner, fundamental inputs into portfolio positions in an effort to maximize portfolio returns and minimize uncompensated risks.

The MACS investment philosophy results in portfolios that aim to be:

  1. Diversified: To build robust portfolios, we believe it is necessary to recognize two dimensions of diversification: first, in terms of markets and asset classes, second, in terms of sources of returns and factors.  Moreover, diversification has to work in different market regimes.  Achieving portfolio diversification that holds up during equity market drawdowns is an important consideration when we design portfolios.
  2. Dynamic: As the investment environment changes, positioning across and within asset classes must be dynamically adjusted to reflect changes in fundamental outlook and in risk environment.
  3. Defensive: Downside protection is a particular area of attention.  Any investment strategy can be expected to experience drawdowns.  However, we aim to mitigate underperformance, especially in periods of equity underperformance, through the beneficial effects of diversification, the application of defensive volatility strategies, and through careful calibration of our return forecasts.
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