Epsilon Asset Management (Epsilon) today announces a collaborative partnership with Novus to develop and manage systematic active equity strategies based on public data for institutional investors and family offices.
Epsilon is a quantitative asset management firm which pursues fundamental stock-selection alpha through a data science investment approach. Epsilon uses a systematic approach toward analyzing the public regulatory filing holdings of all active managers in determining predictive skill-sets for future stock-selection alphas. The team honed its experience in developing analytics describing manager skill-sets during their tenure at Novus Partners. (https://www.epsilonmgmt.com/)
Novus Partners is the worlds leading portfolio intelligence platform with over $4 trillion in client assets under management among its client base. Novus is a leader in investment analytics who has pioneered the process of analyzing asset manager skill sets. Novus is a platform for the industrys top investors to collectively innovate and has developed a proprietary database of public regulatory filing data. Epsilon leverages this dataset in its partnership with Novus to bring active investment strategies (based on public data) to market. (https://www.novus.com/)
In this partnership, Epsilon focuses on the development and marketing of systematic active equity strategies based on public regulatory filings processed by Novus. Epsilons access to Novus data and technology is limited to its Public Ownership module, not dissimilarly to other Novus clients subscribing to this service.
Novus remains an industry leader in data management, and analytics for the investment community, and will continue serving allocators and managers willing to extract insights from this dataset on an advisory basis. Through this partnership, Epsilon unlocks an additional channel for investors to benefit from the insights contained in public regulatory filings, one where allocators can now invest alongside Epsilons talented team.
Epsilon co-founder and Novus alumnus Adam Lavin explains, Having worked at Novus since its early founding, Ive seen the evolution of technology for investors looking to do more with data. Novus first incubated skill-set analytics through public data, and Epsilon focuses on rigorously testing this dataset for predictive value, with the goal of producing investment solutions. Formalizing this relationship allows us to partner with Novus expertise in delivering data and analytics with our expertise in constructing systematic active equity strategies.
Andrea Gentilini, Novus CEO, commented, Allocator clients want to do more with public data, whether its capturing best ideas, or hedging out crowded bets. While we continue to work with clients by providing user-friendly access to public data, as well as advising on how to extract actionable insights, some allocators prefer to directly delegate the management of strategies based on public data and insights. This is where Epsilon comes into play.
Epsilons Core Products
Epsilons core products fall into two camps: Unconstrained Strategies and Benchmark-Constrained Strategies. Both leverage Epsilons proprietary algorithms in delivering risk-adjusted returns. The former is free to deviate from benchmark risk characteristics, while the latter is constricted by the underlying beta-characteristics of an index. The Epsilon Unconstrained Strategy, the firms flagship strategy, was seeded with internal capital in fourth quarter of 2016 and took in external capital in Mid-2017.
Epsilons Customized Solutions
Epsilon offers customized sleeves as bespoke product offerings, affording clients tactical flexibility beyond simple passive betas.
One such example is the Epsilon Regional Bank Strategy, a tactical portfolio centered around capturing favorable dynamics in domestic regional banks.
Public Data Usage
As described above, these investment products rely solely on the analysis of publicly available holdings data from 13F regulatory filings. No private data from Novus clients or any third parties is utilized, analyzed, integrated, or referenced in any way in the creation of these strategies.
Novus does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index or data analysis. Novus makes no assurance that investment products based on an index or any data analysis will accurately track index performance or provide positive investment returns. Novus is not an investment adviser, and makes no representation regarding the advisability of investing in any such investment fund or other investment vehicle. A decision to invest in any such investment fund or other investment vehicle should not be made in reliance on any of the statements set forth in this press release.
Epsilon is a limited liability company incorporated in the state of Delaware. Epsilon is a registered investment adviser with the U.S. Securities and Exchange Commission. Neither the information nor any opinion contained on this release constitutes an offer, or a solicitation of an offer, to buy or sell any securities or other financial instruments. Investors are cautioned that statements regarding future prospects may not be realized and that past performance is not necessarily indicative of future performance.