Counterpoint Asset Management, and its affiliated advisor Counterpoint Mutual Funds, both use systematic investment strategies to seek a conservative path to take unwanted emotion out of investing.
The firms draws their names from the rule set that governs the interaction between voices in music. The foundational rules of portfolio theory are not unlike the foundational rules of music; complementary parts placed in a constrained and precise order form an improved outcome.
Counterpoint’s approach to investment management is entirely consistent with the rules of counterpoint. We see the name as a fitting homeage to both the musical discipline while highlighting our aspiration to serve our clients with systematic and objective integrity.
Our Investment Approach
Counterpoint uses an academic evidence-based approach to offer time-series (tactical) and cross-sectional (using multiple factors) quantitative strategies to our clients.
Time-series refers to using observations of historical data to inform the next investment decision; this allows trend-following approaches that are able to seek the reduction of portfolio volatility. Time series or trend-following strategies generally seek to buy a market when its price is rising or steady, and switch to lower-risk investments when the market being followed is falling in price.
Cross-sectional strategies in stocks look at a universe of companies and rank them with factors at any point in time, and invest accordingly. In equity investing, there is a consensus in academia that buying the best companies (while inversely selling or shorting the worst) according to their factor exposures gives an investor the best chance to improve their investment return potential versus holding a passive stock market index fund.