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