SSgA's Global Alpha Edge Strategy seeks to provide investors with global equity returns that consistently exceed those of the benchmark. This core strategy uses a quantitative model to select stocks within global industries and favors companies with strong balance sheets and attractive growth prospects. The Strategy extends traditional investment practices that under weight unattractive stocks by including limited short positions. All shorts are hedged with additional long holdings to create a portfolio that is 100% invested in global equity markets.
| The Strategy uses an active, bottom-up quantitative stock selection process, which allows us to identify the best stocks within each country and industry, while tight sector and country/region constraints provide additional risk control disciplines. With approximately 3,000 stocks in the global stock universe, quantitative techniques are particularly well suited to such a broad mandate. The Global Alpha Edge Strategy can be described as a style and capitalization neutral, core strategy. It seeks to deliver consistent out performance across environments favoring either value or growth. The Strategy seeks to achieve higher returns and information ratios by implementing net short positions in stocks rated poorly in our models matched by additional long positions in stocks rated favorably. This maximizes the efficient capture of SSgA’s stock selection value added. Portfolio managers in this strategy may manage long-only and long-short portfolios for SSgA or its affiliates. SSgA has implemented various safeguards to address potential conflicts of interest. |
Geography of Investment:
Global
Base Currency:
USD
Capitalization:
Large/Mid
Style:
Core
Primary Benchmark:
MSCI World
Return Target:
Benchmark Plus 400 to 500 bps
Investment Approach:
Active Quantitative
Asset Class:
Equity
Investment Vehicles
Institutional Pooled Fund
Separate Account
Return Drivers
Security Selection
Marcus Schulmerich: Global Alpha Edge Strategy
[09:34 min]
Marcus Schulmerich
(Bio)
Vice President
,
SSgA - Germany
