MW Trade Optimisation Portfolio System (TOPS) using a highly quantitative process to assess sell side recommendations, assessing recommendations from a large network of research analysts to ascertain their best ideas. The collected data is then further analysed on a variety of measures such as the accuracy of historical predictions, analyst consensus, rating momentum, behavioural biases’ etc to develop an alpha forecast. The alpha forecast then feeds the portfolio construction process in tandem with a quantitative assessment of market conditions and various optimisation & risk metrics, ensuring that the portfolio remains well diversified at all times.
We like the fund for its robust process, which has been tested over several market cycles and is able to take into account huge amounts of information as a result of the quantitative nature. Although the portfolio is not always market neutral per se, the fund has been able to protect investors through stressed markets.