Artificial Intelligence and Machine Learning models have shown promise in improving forecasting accuracy across a wide range of problems, such as image and speech recognition, text translation, and medical diagnosis. In this feature article with IPE, LACM’s Co-CIOs, Ed Rackham and Hal Reynolds, discuss how Natural Language Processing, a subset of Machine Learning, can help to identify linkages between equity market peers.
The past eight years are an important reminder that the largest companies may dominate for extended periods of time, so how should investors evaluate the dominant competitive positions and fundamental momentum of these companies? In this article with P&I, Hal Reynolds, Co-CIO, and Sidharth Madan, Associate Director, Research, discuss different factors investors may focus on in their search for more consistent active returns.
Growth beat value in the first half of 2023, but will its outperformance last? In a discussion with Institutional Investor, LACM’s Co-CIO and Co-Founder Hal Reynolds offers his thoughts on why better economic conditions are likely required for value to make a sustainable rebound.
Any opinions expressed in this publication are current only as of the time made and are subject to change without notice, and the Firm assumes no duty to update any such statements.
Co-CIO and Co-Founder of LACM Hal Reynolds spoke to the Financial Times about the outlook for the integration of AI technologies across the investment management arena. Machine learning and Natural Language Processing plays a role in LACM’s forward-looking, adaptive process, enabling the Firm to harness investors’ changing expectations as key inputs to its proprietary dynamic model.
Achieving Client Success Through Research and Technology
LACM challenges the conventional wisdom that market environments dictate manager success. The Firm recognizes that investor preferences shift and change as market cycles evolve, and that long-term factor behavior does not guarantee future outperformance.
As such, LACM employs a dynamic, forward-looking, and adaptive approach, centered around Investor Preference Theory®, and implemented via its proprietary stock selection model.More About LACM
LACM's investment philosophy is underpinned by its proprietary concept of Investor Preference Theory®.
Investor preferences and risk tolerances change as the market evolves, and long-term historic factor behavior is not always an accurate indication of future performance and returns.
This innovative and dynamic concept forms the DNA of LACM's investment process, guiding the research team in its search for alpha. Los Angeles Capital's Dynamic Alpha Stock Selection Model® seeks to avoid historical biases in favor of capturing and incorporating the views of today's equity investors, resulting in portfolios that adapt to the current economic environment.Learn More About the LACM Approach
LACM forecasts returns and risks on equity securities globally, tailoring portfolios to meet specific investor requirements.
The Firm presently offers over 20 equity strategies*, with products aggregated into broad categories such as Global Equity, U.S. Equity, Non-U.S. Equity, Emerging Markets Equity, Active Extension, and ESG.Learn More About LACM Strategies
*As of December 31, 2023
Investors should conduct their own analysis and consult with professional advisors prior to making any investment decisions. Diversification does not eliminate the risk of experiencing investment loss. Past performance is not a guarantee of future results. Investment process is subject to change.