Vericimetry’s broadly diversified asset class investment strategies allow us to efficiently trade in the equity markets. Through quantitatively structured implementation and cost conscious trading techniques, Vericimetry’s investment implementation seeks to enhance returns for the investor by focusing on factors critical to investment performance: reasonable investment management fees, low portfolio turnover, low trading costs and maximum use of tax efficient investment techniques.
Reasonable Investment Management Fees | Vericimetry believes that public equity stock market prices reflect, on average, a fair price to make an investment. Public equity market prices reflect a highly competitive market among well-paid investment professionals. Vericimetry believes it is not necessary to spend time and money gathering and analyzing company level information to make the investment decisions. Instead, Vericimetry spends its time building strategies based on rigorous academic research and quantitative modeling to achieve broadly diversified investment portfolios. Vericimetry’s quantitative investment philosophy results in investors experiencing cost effective investment management fees that are substantially less than active management investment fees and that are quite reasonable for the level of risk exposure we seek to deliver.
Low Portfolio Turnover | A key component of Vericimetry’s quantitatively structured investment philosophy is low portfolio turnover. High portfolio turnover typically imposes high transaction costs that can reduce investment performance. By focusing on persistent risk characteristics, Vericimetry’s quantitative approach leads to a structured portfolio design with low turnover to deliver returns appropriate for a given asset class.
Low Trading Costs | Vericimetry’s quantitatively structured investment philosophy focuses on minimizing trading costs and their resulting negative impact on investment performance. Many active stock-selecting investment managers believe their selection skills outweigh their typically high trading costs. Passive index investment managers believe that their primary objective of adhering to an index is of more importance than the transaction costs of tracking that index. Vericimetry’s quantitatively structured investment philosophy includes trading flexibility that is designed to result in low trading costs.
Tax Efficient | Investor-level tax considerations are an important element of Vericimetry’s investment philosophy. Vericimetry’s quantitative approach aims to incorporate tax-efficient techniques into its investment process to allow both tax-exempt and taxable investors to consider the importance of reducing the impact of taxes on their portfolio. Active investment managers often consider investment performance only on a pre-tax basis, ignoring the impact of potentially significant adverse tax implications on overall investment returns. Passive index investment managers focus on exactly replicating the benchmark, irrespective of tax consequences. Vericimetry’s philosophy incorporates the goal of achieving low investor taxes into its investment process – seeking to enhance after-tax investment performance.