B IZ Capital has a multidisciplinary team that adds quantitative methods to investment decisions. The goal is to make more complete decisions in a shorter period of time based on quantifying the impact that all relevant information can have on returns and risk.
Known as the Quant approach, this strategy involves the use of mathematical models and ever larger sets of data to analyze financial markets in order to target and filter good investments more accurately in an attempt to reduce the risk involved in the process.
To do this, the models go through numerous steps where primarily it is necessary to determine which data is most relevant in making investment decisions. After this, it is necessary to transform this information and figure out how to turn it into “investment trends”.
This method allows the team to evaluate large amounts of data on thousands of financial assets at once, even daily if necessary. The models can simultaneously predict the attractiveness of assets and propose solid investment portfolio opportunities, or on the contrary suggest selling a position and staying liquid.
While this methodology is a very important tool in the house, the team also takes into consideration, other possibly less quantifiable but relevant information that the models do not consider.
From the combination of both quantitative and fundamental methods comes the essence of our portfolios, which has been particularly effective in building optimal portfolios.