PHILOSOPHY

coun•ter•point

/’koun(t)er, point/

NOUN

The use of contrast or interplay of elements in a work of art.

An investment portfolio requires careful integration of contrasting and interacting elements to meet its objective. Active management in the form of diversification at the asset class level and subsequent use of tactical strategies over time is an expression of counterpoint.

Trends in asset prices are by definition not instantly factored into markets. The use of quantitative active management strategies that detect these trends provides investors with an opportunity to avoid exposure to the worst of downturns and to seek profit from economic recoveries.

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