The Empiric Core Equity Fund is a globally diversified, multi-cap, total return fund. The fund utilizes several highly structured, quantitative, and empirical (SQE) computer processes to identify possible opportunities, trends, and market shifts. We believe the SQE process increases the chances of repeatability in investment returns. The following is a brief overview of the SQE process:
- Quantify Information
- Identify and Embrace Appropriate Level of Risk
- Use a Continuous, Disciplined, and Repeatable Investment Approach
Quantify Information
Investors are bombarded with information from a tremendous number of sources. It is extremely difficult to filter, categorize, analyze, correlate, and test information to make an informed, unemotional decision without utilizing computer processing power.
Empiric’s research process simultaneously examines thousands of data points, evaluating industries and strategies using economic, market, and security data to identify possible opportunities, trends, and market shifts. In order to conduct this level of in-depth analysis, Empiric has developed several computer models that emulate this research process. We’ve found this approach to be particularly effective at capturing contradictory information, identifying shifts in market direction, and pinpointing the market’s current
sweet spot.
Identify and Embrace Appropriate Level of Risk
Identifying and adjusting for the appropriate risk level is equally important. Individuals and professional investors often take on an inappropriate level of risk, or overlook it all together. It is easy to identify this mistake in hindsight, but far more difficult to apply the appropriate levels of risk on a regular basis. Empiric has developed several computer models that take into account numerous risk factors. Each risk factor has a given weight which is compared to the portfolio.
Use a Continuous, Disciplined, and Repeatable Investment Approach
The firm’s SQE process evaluates thousands of securities daily, comparing each to the opportunities currently available in the global market place. As a result, the portfolio construction process is continuous and unemotional. Decisions to buy securities are based on the expected return for the next twelve months as well as the impact of that holding on the fund’s overall risk/return profile. Decisions to sell are based on changes in the security’s risk/return profile or valuation. We believe that our computer models greatly increase the chances of repeatability in investment returns. The Fund historically has preferred securities with low P/E ratios.
(The Price to Earnings (P/E) Ratio is calculated by dividing current price of the stock by the company's trailing 12 months' earnings per share.)
