Marshall Wace

Our Investment Approach

Our Investment Approach

Marshall Wace is a world leading equity long/short investment manager for institutional clients. Our strategies include both fundamental and systematic styles. These are implemented by regionally located investment teams utilising our proprietary systems and processes. The firm prides itself on its scientific approach and a culture of continuous innovation and rigour.

Fundamental Strategies

Marshall Wace fundamental investment strategies are designed to capture stock based idiosyncratic alpha, and are concentrated in specific regions and sectors. Each fundamental strategy team is managed by a portfolio manager supported by a number of analysts with distinct areas of expertise. We seek to achieve exceptional returns at all stages of the investment process through creative idea generation, rigorous due diligence, company meetings, detailed financial modelling, disciplined portfolio construction and efficient trading and implementation.

Systematic Strategies

Alongside the fundamental business, Marshall Wace is a global leader in systematic equity strategies. In 2001, we launched MW TOPS, accredited with being the world’s first ‘Alpha Capture’ application. MW TOPS is a proprietary system that collects investment ideas from over two hundred sell side institutions and independent research providers, that has resulted in the execution of millions of trades annually. The TOPS architecture allows for global, diversified portfolios with differing risk and trading profiles.

Extending the competitive advantage driven by TOPS, Marshall Wace has since invested heavily in the development of multiple strategies in equities and other asset classes driven by data and company analytics.

Technology and data have been at the core of our business for over 20 years. Our innovative approach to systematic strategies reflects our diverse team of research analysts from a broad spectrum of academic and professional backgrounds. Our research teams identify and exploit patterns in both proprietary and commercially available data sets using a variety of multi-disciplinary techniques and approaches.

We aim to challenge conventional thinking and to develop unique perspectives on data sets to deliver sustainable alpha for our clients. This approach yields great investment flexibility built on robust systems, process and control architecture as we tailor our services to meet our clients’ needs.

Our global infrastructure allows the strategies to operate across the equity spectrum – including emerging markets – where liquidity allows. All strategies are fully integrated into our proprietary risk management framework and electronic trading platform, which targets low execution costs.

Fundamental and Systematic Strategy Convergence

As the boundaries between fundamental and systematic strategies continue to blur, Marshall Wace is ideally positioned to explore the unique opportunities that arise from the synergies between the two sides of our business. ‘Quantamental’ investment tools which find trading signals in complex data patterns enable Marshall Wace to bring innovative dataset knowledge and systematic investment discipline to refine our fundamental portfolio management approach, while also allowing the development of entirely new strategies and optimisation processes.