The U.S. is the world’s largest and most dynamic stock market. However, with the ”Magnificent 7” stocks accounting for over 50% of S&P 500 gains in 2024 and valuations appearing stretched, many investors are seeking broader market exposure and sources of alpha beyond just these handful of companies.

MDT, part of Federated Hermes, believes an active, systematic approach can generate excess returns across an entire market cycle.

The firm uses proprietary machine learning techniques to model various return drivers across different types of companies, tailoring forecasting methods accordingly and subjecting them all to continuous review.

This approach provides a broad range of potential alpha sources, leading to more consistent performance.

What is Quant Investing? 

Quantitative investing (quant) encompasses a broad range of strategies that use data analysis, mathematical modelling and automated transactions seeking to deliver investment returns.

You can now read the full whitepaper at the link below