Our Culture

Our Culture

To consistently innovate and to advance the success of our investors and clients with the quality of our products and services.
Our Beliefs

Our Beliefs

We believe in strict risk management to avoid drawdowns and to benefit from the superior power of return compounding.
Our Motivation

Our Motivation

At SAR we are driven by passion and dedication; being patient and disciplined, we work harder than most to achieve greater success.
Our Focus

Our Focus

To trade highly active and very liquid investment strategies with outstanding performance and an exceptional level of transparency.
Our Commitment

Our Commitment

To provide outstanding results and excellent added value with high quality, absolute return and Alpha generating investment solutions.
Our Vision

Our Vision

To be one of the leading investment boutiques for active investment strategies in the field of scientific, research-driven, model-based, quantitative portfolio management.
Our Ethics

Our Ethics

To commit ourselves and live up to high standards of ethics and compliance.

Philosophy

Committed to Active Asset Management

Our investment philosophy builds on the latest scientific observations and assumptions stipulated by the Adaptive Markets Hypothesis (AMH) introduced by M.I.T. professor Andrew Lo in 2005.

The Adaptive Markets Hypothesis (AMH) builds upon the Efficient Market Hypothesis (EMH) and integrates observations and findings made by scientific research in behavioral and evolutionary finance, psychology, as well as the latest results from cognitive neuro-sciences.

Humans act mostly rational, but react emotional to changes in their environment and they adapt to survive. This is the reason, prices can move differently and movements can go on longer than rationally expected, creating structural breaks and behavioral biases that influence markets. As a result, returns cannot be reliably forecasted, volatilities and correlations are unstable and risk premiums dynamic; realities the Modern Portfolio Theory (MPT) does not consider and cannot explain.

With regard to the effectiveness and efficiency of quantitative, model-based investing, we strictly follow and apply the logic of the Fundamental Law of Active Management (Grinold/Kahn), i.e. maximizing and stabilizing a strategy´s information coefficient and applying it with high frequency (breadth), to maximize excess return (Alpha). 

We believe that combining the insights given by the AMH with the logic of the Fundamental Law of Active Management will achieve superior results for our investors and justify our highly active, scientific and quantitative investment management approach as we eliminate emotional and behavioral biases from our own decision making processes.

 

The Essence of our Proprietary Adaptive Asset Allocation® (AAA) Approach

We believe Modern Portfolio Theory (MPT) is not wrong, it is mainly incomplete. Based on its development history, it has been designed with a limited – rational – conception of the human being, its behavior and decision making processes. Humans are not purely rational beings, they are rather emotional, which strongly influences their decision making. This presents a challenge to traditional – MPT based –  finance theory and is a true paradigm shift.

The new world order in investing is a dynamic one. Markets and participants are driven by evolutionary forces such as competition, mutation, reproduction and natural selection. As a result markets are dynamic and context dependent. Convergence to an equilibrium is neither guaranteed nor predictable, behavioral biases abound.

This presents fertile ground for active and especially quantitative asset managers – SAR has developed its own proprietary Adaptive Asset Allocation® (AAA) approach and is intensively working this ground to achieve the best results for its investors.

Contact us to learn more on how we see the world of investing!

 

  ®Adaptive Asset Allocation is a registered trademark, licensed to SAR AG