To deliver superior, risk-adjusted returns to our investors
Our primary objective is to deliver consistent, absolute returns. We believe that our utilisation of a range of investment strategies, both process-driven and manager-led, broadens the source of alpha generation, diversifies risk and delivers performance. We recognise the constraints that investment scale can impose on performance and we are one of the few European-based hedge fund managers to have returned capital to investors.
To preserve capital
The preservation of capital is a fundamental tenet of our investment process. A proprietary risk management platform enables the monitoring of risk in real-time across multiple dimensions. It also allows us to test for the impact of historic and prospective stress scenarios.
An independent risk monitoring and performance measurement team reports into the Chief Risk Officer.
To evolve
Marshall Wace believes that constant evolution is a key to maintaining competitive advantage in a rapidly changing industry. From traditional beginnings, combining the extensive investment banking and asset management equity-market experience of our two founding partners, Marshall Wace has shown a commitment to seeking new and innovative ways to generate alpha.
Marshall Wace was one of the first managers to divide a fundamental equity portfolio into core and trading books. Through MW TOPS, we are known for the creation of one of the most innovative strategies in the alternative investment management industry; a systematic process that sets out to harness the alpha contained within the investment ideas of a worldwide network of equity salespeople in real-time.
Evolution is built off a substantial and ongoing investment in people and technology. This commitment has enabled the development of a range of proprietary applications utilised across all stages of the investment management process. In addition, to better serve our investors, Marshall Wace is now combining alpha, beta and market-timing skills in the creation of original products to meet their specific needs.
To extract maximum benefit from our service providers
We seek to extract alpha from our service providers. This is facilitated through the MW TOPS process and through detailed analysis of research, idea generation, execution and capital provision. The data generated provides quantitative assessment regarding the skill sets and behavioural characteristics of a vast number of salespeople, both generalist and sector specialists. This information is used to drive the MW TOPS process, assist the manager-run strategies and enhance our ability to execute order flow.
We seek to measure the quality and value of the output we receive from service providers, in order to incentivise and condition participation in our model, and to optimise our investment process. This unique knowledge base and process confers distinct competitive advantage on Marshall Wace.
To reward our service providers equitably and transparently
We believe in rewarding our service providers in direct relation to the value of their research, the investment ideas they generate and the quality of trade execution. We provide comprehensive feedback using a wide range of quantitative factors. Marshall Wace thereby focuses, rewards and motivates its counterparties to achieve a common objective.