Studies have shown that active fund managers routinely underperform the S&P500 index*​

WALL STREET X

Our forecasting model is based on the theory of mean reversion, where a company’s earnings growth and valuation tend to revert back to sustainable levels over time. It considers many evidence-based factors which include the following: 

2) Industry momentum accounts for a substantial portion of individual stock momentum.

3) Analyst long term growth is typically over optimistic.

Therefore, our quantitative model also assumes that overall performance will revert to market average over time; while also adjusting for overly optimistic earnings forecasts.

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