Global Investment Solutions

Systematic, data-driven investment strategies

Intech offers a diverse set of equity strategies based on the principles of Stochastic Portfolio Theory published by our founder over 35 years ago. Our unconventional, mathematics-based approach seeks to capitalize on diversification for risk management AND alpha by constructing portfolios that are more efficient than their benchmarks and rebalancing them to unlock trading profit opportunities. We apply our approach across four investment platforms.

The Intech Way®

Intech Process

Conventional managers rely on a stock-centric approach, selecting securities they believe will outperform the market. Intech uses stock price volatility to capitalize the portfolio effects that contribute to compound returns. Our process involves three steps:

  1. Estimate stock price volatility and correlations of benchmark constituents.
  2. Improve the benchmark’s diversification by optimally reweighting its constituents.
  3. Rebalance the portfolio systematically, seeking to capture trading profit and replenish diversification.

Traditional Equity

Intech’s traditional equity strategies intend to deliver risk-adjusted returns relative to benchmarks, applying over three decades of systematic investing insights. Our disciplined, repeatable process is highly customizable for geographic regions, return objectives, risk budgets, or sustainability goals.

Enhanced Since 1987, our enhanced equity strategies have sought to offer the benefits of passive investing while outperforming passive vehicles after fees. These strategies target a higher probability of excess returns by limiting active risk and a more consistent range of outcomes.
Active Intech’s active strategies attempt to offer a dependable source of excess return with a moderate – and predictable – level of active risk for the core of your portfolio. Our clients use these strategies to diversify their alpha sources in multi-manager settings.

Defensive Equity

Our defensive equity strategies focus on managing absolute risk relative to equity markets, seeking upside participation and downside protection. Like all Intech strategies, we built our defensive equity platform on the principles of Stochastic Portfolio Theory, never relying on a low volatility anomaly.

Low Volatility Our low volatility strategies seek equity-market-like returns with lower volatility and better downside protection. We offer two approaches to fit our clients’ policy benchmarks or risk budgets. Each uses different optimization methods and index families.
Adaptive Volatility A hybrid of Intech’s traditional and low volatility equity strategies, adaptive volatility strategies attempt to outperform cap-weighted benchmarks, and with lower risk, by dynamically adapting portfolio volatility to prevailing market risk conditions.

Alternative Equity

Intech alternative equity strategies seek to deliver positive returns over time, with low correlation to traditional and alternative asset classes. These strategies are intended to diversify traditional, long-only equity market exposures.

Absolute Return We engineered our absolute return strategies to target 500 bps of annualized excess return over the risk-free rate, using our adaptive volatility strategy’s alpha source and systematically shorting equity futures to limit beta exposure.
Market Neutral Our market-neutral strategies seek to outperform the three-month LIBOR rate over rolling 3-year periods, accessing our traditional active equity alpha source and neutralizing general market risk by shorting equity futures.

Tap into our distinctive alpha source.