MDT’s investment approach is quite different to many other active managers you may come across in the market. There are collectively a few things that I think really differentiates MDT from our peers.
First off is our experience. We’ve been managing our investment process now for over 30 years. We’ve been able to evaluate how our process has worked in many different types of market environments over that time frame, and we have very strong experience in utilising predictive modelling and advanced modelling techniques to help us identify a broad range of companies to consider for our portfolios.
The second piece is around the Alpha engine. The Alpha engine that we utilise is a machine tool that helps to look across the broad investment market every day and identify the optimal ways to evaluate different types of companies. That type of alpha engine that we have allows us to cast a very wide net with respect to potential ideas across the market to consider for our portfolios, with the outcome really focused on being able to deliver a portfolio that can generate consistency and excess returns.
Finally, last but not least, is the disciplined, risk-managed investment approach that we utilise every day. We have a dynamic process in the sense that we come up with a single return forecast for every company in the market, and we also update our portfolio positions on a daily basis, allowing us to take advantage of timely market opportunities to ensure our portfolios always reflect our strongest, most current ideas. We manage highly diversified portfolios built to limit unintended risks which can lead to stronger portfolio resilience through market cycles and potential for improved risk-adjusted returns.
