Fundamental investors, harnessing technology.
Active, bottom-up investment driven by fundamental analysis is core to every investment decision.
What do we believe?
- Markets are inefficient due to behavioural biases creating pricing anomalies
- This can generate diverse alpha opportunities across investment styles
- Combining fundamental insight with quantitative analysis is the optimal way to unlock alpha
The 4Factor investment process
A disciplined, integrated investment framework.
- Investable universe defined by liquidity and market capitalisation
- Alpha model ranks stocks in the investable universe from most to least preferred
- Fundamental research undertaken through portfolio and cluster discussions
- Analysts focus on high-ranking stocks with attractive characteristics
- Portfolio construction informed by conviction, risk and guideline considerations
- Monitoring and active ownership of portfolio holdings
What pricing anomalies are we looking to exploit?
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Quality
Underappreciated addressable market growth, persistent returns that can compound over time -
Value
Compelling value & tangible catalysts, often in cyclical industries -
Operating performance
Revisions to forecast estimates, positively trending key business drivers -
Investor attention
Positive technical momentum confirms pricing anomalies
The resulting portfolios maintain balanced exposure across traditional investment styles, with returns driven primarily by stock-specific risk rather than macro or style factors.
What is the objective?
- Portfolios dominated by stock specific risk
- Balanced exposures over time to growth, quality, value and momentum
- Long-term risk-adjusted returns driven by a robust, repeatable process
Meet the Portfolio Managers
Rhynhardt Roodt is head of the 4Factor team, which is based primarily in London and Hong Kong. The passionate team of investment specialists with diverse backgrounds, skills, and experience are all unified by the common language of 4Factor.