Our US Core strategies seek to offer investors exposure to high-quality US businesses across a blend of growth and value companies without a particular style bias.
Our approach to investing is built upon a blend of two key investment philosophies.
Rigorous fundamental research
We conduct bottom-up, fundamental research that is rigorous and often contrarian, and we apply dynamic, industry-specific valuation metrics. We stick to the disciplined approach of buying strong business franchises with excellent management teams. We also leverage frequent access to company management teams to gain deep insight.
Central to our process is an investment team that actively balances growth and value ideas in order to provide US market exposure without a style bias.
We understand that US businesses are intricately linked with the global economy. Our team leverages real-time insights from a broader research team that works across all market caps, as well as insights from our Fundamental Equity colleagues across the globe and the Global Fixed Income team.
Multifaceted risk management
We employ a comprehensive approach to risk management and work with the Fundamental Equity Team’s Chief Risk Officer to scrutinize portfolio risks, avoid unintended factor bets and work towards our goal of generating excess returns through stock selection. We also seek to benefit from the robust resources of independent GSAM and firmwide risk management teams.
Our US Core strategies seek long-term capital appreciation by investing primarily in the equity securities of companies in US markets using a variety of technology-driven techniques.
We seek to harness the power of Big Data to uncover new and previously undiscovered investment opportunities before the broader market prices them in. Our investment process is built upon rigorous bottom-up research, repeatable security selection and risk awareness, and has evolved over time to include more nuanced and unconventional data. Our culture of research, combined with specialized industry knowledge and technological advancement, continues to drive evolution in our process as we search for robust, diversified sources of return. Our approach is founded upon the following principles:
Robust, on-going research effort
Our research team consists of many well-trained and highly experienced professionals who are constantly focused on enhancing every aspect of the investment process. We combine experienced economic insight with non-traditional data sources to provide perspectives on companies that other investors may not be seeing.
Disciplined, comprehensive investment approach
We have an extremely systematic and disciplined approach to investing. Our process allows us to assess all of the stocks within our investment universe on a daily bases. By employing a rules-based approach, we aim to produce repeatable results from intended sources of return.
Proprietary daily risk modelsWe have developed proprietary, process-specific daily risk models that offer numerous potential advantages over third-party models. Our portfolio construction process utilizes these models to manage risk and allocate risk only where we believe there is potential for positive returns.
Independent risk management groupWe seek to be on the cutting edge of risk management. We leverage an independent Market Risk Analysis (MRA) department that monitors the risk of all the division’s products and portfolios independent of the portfolio management process. The department has developed a division-wide architecture that aims to track the absolute and relative risk level taken by each of the portfolios under management.
For more information, please contact your GSAM relationship manager