At AlbaCore, we focus on the long-term. As one of Europe’s leading alternative credit specialists, we invest in private capital solutions, opportunistic and dislocated credit, and structured products. 

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Specialist in Asia Pacific, China, India and South East Asia and Global Emerging Market equities.

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Our philosophy is very simple. We are constantly searching for high quality businesses and when we acquire them, we will work relentlessly with them to create long-term sustainable value through innovation, ESG-led and proactive asset management.

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formerly Realindex Investments

Leader in active quantitative equities across Australian equities, global equities, emerging markets and global small companies.

Backed by a unique blend of research, portfolio construction and risk management, focused on uncovering original insights and translating them into investment strategies that are active and systematic, aiming to generate alpha.

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Stewart Investors manage investment portfolios on behalf of our clients over the long term and have held shares in some companies for over 20 years. They launched their first investment strategy in 1988.

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Quantitative Value Strategy

Quantitative Value Strategy

RQI Investors’ quantitative value strategies have a long history of outperformance versus peers and value indices.

Our disciplined, highly active, and repeatable value investing process provides investors with a benchmark unaware, diversified equity portfolio that is cost competitive versus fundamental active stock pickers. 

An important part of our value approach is reducing exposure to value traps and companies that may be cheap for a good reason. ESG signals and carbon reduction are also part of the strategy. 

How are our Quantitative Value portfolios constructed?

Questions about investing in RQI Quantitative Value Strategy

What is quantitative investing?

Quantitative investing, also known as systematic investing, is the disciplined application of data-proven economic ideas. Quantitative active equities investing involves using mathematical and statistical models to identify and select stocks for investment. We capture and apply ideas like good value, good management, strong market sentiment or quality of earnings growth in ways which we believe are performance enhancing, taking risk and the cost of trading into account.

What sets RQI Investors quantitative value portfolios apart?

Our approach differs from fundamental investing in two distinct ways. Firstly, our insights are diversified and empirically proven, offering a scientific approach that ensures scalability and repeatability. Secondly, our portfolios are constructed to capture excess return while directly taking risk into account.

Underpinning our approach is a focus on extensive high-quality data sets and robust research and production systems, as well as a team that is both technically very strong and market aware. We use our own advanced tools and techniques, including the most recent advances in data science such as Artificial Intelligence and machine learning to analyse large amounts of data in real time and identify patterns whilst translating these insights most efficiently into our clients' portfolios.

How do we use quantitative techniques to construct our value portfolio?

We use an active and quantitative approach to manage exposure to stocks by creating a Core Value portfolio that allocates weights to stocks in an investible universe based on accounting metrics (sales, book value, cash flows and dividends). We then apply our proprietary alpha signals to help reduce the portfolio’s exposure to value traps i.e. stocks that maybe cheap for a good reason, and incorporate additional information beyond the accounting fundamentals to improve the overall risk and return characteristics. In this way, we can optimise our portfolios whilst maintaining the value characteristics, to take advantage of opportunities overlooked by the market, with the objective of beating the benchmark over the long term. 

What are our alpha signals?

Our proprietary alpha signals, or insights, are derived from quantitative analysis of various data sources, including financial statements, market data, news articles, conference calls and sentiment. These signals consider value, momentum, quality, volatility, and sentiment. Value signals look for stocks that are undervalued by the market, while momentum signals look for stocks that are trending upward. Quality signals assess a company's financial health and profitability, while volatility signals measure a stock's risk level. Sentiment signals analyse public opinion and market sentiment to identify potential market-moving events.

How do we consider ESG in our investment strategies?

We employ a multi-faceted approach to Environmental, Social and Governance (ESG) and our portfolios align with First Sentier Investors’ Responsible Investment and Stewardship Policy.

As part of our stewardship responsibilities, we have implemented two firm-wide exclusions for companies involved in the manufacture of controversial weapons* or tobacco products** or own more than 50% interest in entities that derive any revenue directly from the manufacture of controversial weapons or tobacco products.

Additional areas that we embed ESG considerations into our value portfolio include:

  • Carbon intensity exposure constraints: Rather than changing sector allocations, we rotate to stocks with similar alpha and risk profiles but with lower carbon exposure within sectors using intelligent portfolio optimisation.
  • ESG alpha signals: we have actively implemented carbon efficiency-based signals, board and senior management diversity-based signals and actively research other related signals.


* Controversial weapons include anti-personnel mines, cluster weapons, biological and chemical weapons, depleted uranium, nuclear weapons produced in support of the nuclear weapons programs of non-nuclear weapon State Parties and non-signatories to the Treaty on the Non-Proliferation of Nuclear Weapons and white phosphorus munitions. 

** Tobacco products includes traditional cigarettes and other tobacco products (including cigars and chewing tobacco), and not vaping or e-cigarette products.

How do we avoid value traps?

Value investors seek ‘cheap’ stocks that the broader market might be underestimating, which can reward the investor in the long-term as the market realises the intrinsic worth of the stock. However, investors must also exercise caution to avoid value traps – a stock that appears to be cheap at face value but fails to perform as expected.

Our alpha signals enable us to reduce the likelihood of being captured by value traps by tilting our exposure towards stocks that display characteristics such as good quality, value, momentum and sentiment.

Why invest with us?

RQI Investors is a global active quantitative equity manager with a track record of over 15 years across Australian, Global and Emerging Markets equities with strong performance versus value peers and indices. 

  • Our value approach provides investors with a diversified equity portfolio that is contrarian by nature.

  • We are a highly active but cost competitive option to stock pickers.

  • As much as possible we take the emotion out of investing by applying investment rigor that integrates economic insights and data science to construct benchmark unaware and value-tilted portfolios.

  • An important part of our value approach is reducing exposure to value traps whilst incorporating ESG signals and carbon reduction.

Want to know more?

Contact your Relationship Manager