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Quantitative equity management


February 2011

Mark Thurston
Head of Global Equity Research

Quantitative investment techniques have been an increasingly hot topic over the past few years. In the early part of the past decade, quantitative strategies performed very well, but in recent years the returns realized by quantitative managers have materially lagged those of managers following traditional strategies. This research paper reviews both the history and the prospects for quantitative equity products relative to those of traditional products and suggests that despite the recent lag, quants provide diversification and alpha opportunities for investors.


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David Rothenberg
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Gerry Lillis
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Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.

Date of first use: February 2011

USI-9052


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