Research & Insights
Creating Investment Excellence: Building a Strong Diversified Portfolio - The Gerstein Fisher Multi-Factor International Growth Equity Strategy
Abstract:
At Gerstein Fisher, we believe our quantitative structured approach to international growth equity investing offers a compelling alternative to both pure indexing and traditional active qualitative approaches. The Gerstein Fisher Multi-Factor International Growth Equity strategy is grounded in the efficiency of capital markets while capturing specific risk factors identified by time-tested research. By delivering reliable asset class representation and carefully calibrated exposure to proven risk factors, we think the strategy should serve as a strong core holding within a globaly diversified portfolio.
When selecting investments with which to implement their strategic asset allocations, many investors rely on either passively managed index funds or traditional, actively managed mutual funds. both of these approaches have their merits - but also their drawbacks. Indexing can prove too rigid, limiting a fund's flexibility to capitalize on market opportunities and its ability to take on risks that have the potential to reward investors. Active management is more flexible by nature, but introduces the risk of style drift, or themigration over time of a fund or portfolio away from its stated style or market capitalization objectives.