Our Approach

Our Philosophy

We believe:

  • Active management generates alpha by effectively exploiting market inefficiencies
  • Inefficiencies occur due to irrational investor behavior, over-extrapolation of trends and differing investor methodologies, including non-similar time horizons and risk tolerances
  • Objective, robust quantitative stock selection models, augmented by fundamental research, can harvest market inefficiencies

Our Process

We look at a stock in two different ways — quantitatively and fundamentally. This hybrid approach sets Boston Advisors apart from other investment managers that are strictly quantitative managers or strictly fundamental managers. We believe combining the two disciplines helps us add value through a deep and thorough investment process.

Investment Process infographic

The quantitative approach brings objectivity to our analysis, breadth in coverage and a systematic process to the buy and sell decision. In our process, we use three proprietary quantitative models:

  • Regime Model
  • Stock Selection Model
  • Custom Risk Model

Fundamental research complements this data-focused analysis by allowing portfolio managers to understand and evaluate a company's underlying business model, competitive advantage and overall sector and industry group trends. The seasoned judgment of our portfolio managers helps to contextualize and interpret model rankings and validate key recommendations.

The combination of the two disciplines results in a portfolio in which we have high conviction in holdings, moderate turnover, and a deep understanding of the portfolio's overall dynamics and composition.

Boston Advisors, LLC
One Liberty Square, 10th Floor
Boston, MA 02109

Phone: (617) 348-3100
Fax: (617) 348-0081