Want to learn more about quantitative investing at Turner?

Quantitative investing might best be described as scientific investing. Fundamental stock investing relies on subjective stock analysis - scrutinizing a company's financial reports, interviewing its top management, assessing Wall Street earnings estimates. In contrast, quantitative investing is all about objectivity: investment decisions are made according to - and only according to - the hard numbers.

Turner offers two quantitative mutual funds: the Turner Quantitative Broad Market Equity Fund and the Turner Quantitative Large Cap Value Fund. Both funds hold the stocks that we believe have the best statistical chance of outperforming. In the case of the Broad Market Equity Fund, we seek companies across the broad U.S. stock market with capitalizations typically greater than $700 million. For the Large Cap Value Fund, we look for large-cap companies (companies with market capitalizations exceeding $3 billion) that may be undervalued relative to the market or to their historic valuation.

The heart of these two funds is our proprietary quantitative computer model; it applies a complex set of statistical relationships and mathematics as it sifts through the hard numbers of companies and the patterns of their stock performance over the past several years. To those numbers, the model applies certain financial and valuation factors that in our view have proven predictive of outperformance and ranks stocks in each of the 10 market sectors based on those factors. Each sector has its own unique factors. We buy the stocks that rank highly and sell those that rank towards the bottom.

As part of our quantitative process, we employ a portfolio optimization tool designed to ensure that our quantitative funds are properly diversified - that is, they include a diverse mix of stocks that perform differently from each other under various market conditions. That way, volatility can be reduced.

The quantitative model is the sole arbiter of which stocks we buy and sell; it's updated monthly in an effort to keep the factors relevant and fresh.