At Richard Bernstein Advisors, we undertake extensive proprietary research to search out unexploited, secular investment themes. These studies provide the foundation for our long-term strategies, which are then balanced with our shorter-term cyclical research. Our comprehensive arsenal of indicators and models examine, among other metrics, corporate profits and earnings surprises, valuation of global and domestic equities, investor sentiment, correlations, liquidity and portfolio structure.
Our risk control process is central to our strategies. We attempt to dampen portfolio volatility by using highly unique diversification strategies that combine secular asset class cross-correlations with sentiment.
We believe that the most attractive investment themes begin with a “scarcity of capital”, and we search for situations in which the demand for capital outstrips the supply. History demonstrates that such situations may result in years of out-performance.
Although many claim to be expert short-term traders, our research clearly points to the benefits of longer investment time horizons. Therefore, our holding periods tend to be relatively long.