Investment team
A 25-year global equity capability combining quantitative insight and fundamental research to deliver disciplined, repeatable investment outcomes.
25 years of 4Factor
Looking back to look forward:
25 years of 4Factor
The 4Factor philosophy has guided our investing for twenty-five years. This milestone is a chance to reflect on what that experience has taught us and how it continues to inform our approach.
As a team, we review and refine our process constantly, but this looks across the full period to capture the lessons that have kept it relevant. The paper draws on the voices of the people who built and continue to develop 4Factor, reflecting on the decisions that define the investment approach and the challenges that have tested it. Their words are included throughout, because 4Factor has always been defined by its people and the 4Factor philosophy.
Allocators often ask how an investment process develops over time. This exercise sets out that evolution on a broader scale, showing how the philosophy has been tested and the process refined through changing markets. It is intended to give 4Factor clients the context they need to continue holding us accountable as stewards of their capital.
Finally, for us as a team, it’s an important reminder that the best investment processes are always a work in progress
What endures, what evolves
Lessons learned
Lesson 1:
Philosophy matters
“The philosophy gives you a framework that cuts through noise. It keeps you focused on what really drives returns, rather than getting caught up in what everyone else is chasing.”
Lesson 2:
Evolution is essential
“4Factor moves forward through the way the team continues to question, test and learn. Belief in the philosophy stays constant, while introspection and a culture of evidence-first debate sharpen how we apply it. That is what keeps us ready for what comes next.”
Lesson 3:
Culture carries continuity
“Culture has always bound 4Factor together. It is not about a single leader but about habits that are demanding, evidence-first and shared. Over time, these habits have created a language of their own.”
Ready for the next 25 years
4Factor - Key facts
Learn more about 4Factor
25 years of 4Factor
Frequently asked questions (FAQs)
What is the 4Factor philosophy?
4Factor is based on the idea that behavioural biases create persistent market inefficiencies, which can be actively exploited through disciplined, evidence-led and bottom-up investing.
How has the process evolved over 25 years?
It has progressed from a simple four-factor screen to a machine-learning alpha model and defined research clusters, continuously improving how insights are generated and applied.
How do human insight and data work together?
Collaborative intelligence drives the process. The alpha model identifies potential opportunities, and analysts and portfolio managers test these signals through detailed fundamental research to build the bottom-up conviction that guides portfolio investments.
What characterises a 4Factor portfolio?
A 4Factor portfolio is balanced across investment styles and built from stock-specific insights rather than top-down style or macro bets. As a core, style-agnostic equity platform, 4Factor aims to deliver consistent, long-term, risk-adjusted returns by focusing on companies where the market is mispricing marginal change.
All investments carry the risk of capital loss and past performance does not predict future returns.
General risks. The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth. Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations. Investment objectives and performance targets are subject to change and may not necessarily be achieved, losses may be made. Environmental, social or governance related risk events or factors, if they occur, could cause a negative impact on the value of investments.