Strategies & Capabilities


Active Quantitative Equity (AQE)

Human led, research tested: Only our best investment ideas survive the rigor of our analysis.


Our Latest Thinking


How We’re Forming Our Investment Response to Coronavirus

The first order effects of the coronavirus shock have been acute, but the longer term will bring more widespread economic impact — likely an economic downturn and subsequent recovery, each of unknown timing, magnitude and duration.

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Sectors that Surprised in the Coronavirus Market Drawdown

Retailing and Autos as well as Software & Services generated unexpectedly elevated returns. 

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An Evaluation of 80:60 Strategies in Various Global Equity Markets

Defensive equity strategies with 80:60 characteristics can meaningfully outperform their regional benchmarks

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Podcast: Busting Myths and Understanding the Potential of Defensive Equities Across Market Cycles

Chee Ooi, Senior Portfolio Manager with the Active Quantitative Equity team at State Street Global Advisors, discusses the team’s unique approach to constructing defensive equity portfolios and corrects common misperceptions about what a well-formulated defensive equity strategy can accomplish – not just in periods of market volatility, but also in periods of relative calm.

More from AQE Quarterly


Podcast: The Defensive Dilemma: How Investors Can Balance Equity Market Upside & Downside Participation

Bruce Apted, Vice President and Head of Active Quantitative Equity (AQE)
Portfolio Management in Australia and Adhi Mallik, Vice President and Portfolio Strategist for AQE at State Street Global Advisors, discuss their research on upside and downside capture in equity investing through the lens of what we call an “80/60” strategy, and how these insights are implemented for clients through State Street’s unique approach to defensive equities.

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AQE Strategies


How can our capabilities help solve your investment problems?

78% of our Active Quantitative Equity strategies beat their benchmarks over a five-year horizon.*


Searching The World For Alpha


How does the AQE team convert their investment intuitions into an insight worthy of a place in their stock-selection model?

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Meet the Team


Olivia Engel

Chief Investment Officer, Global AQE

"Many people think equity investing is all about finding companies that offer the best returns. We’re focused on the best way to form equity portfolios to deliver the best risk-adjusted returns, in line with the investor’s specific return and risk objectives. Our experience is in applying our investment knowledge across as many companies as possible in a highly objective way."


Gaurav Mallik

Chief Portfolio Strategist; global head of the equity-portfolio strategist team

"Quantitative approaches are relevant to investors who are interested in taking full advantage of the potential of very rich, very diverse universes of companies, such as emerging-markets (EM) small cap. Arguably some of the most attractive companies in emerging markets sit in the small-cap category. In addition, equity returns for EM small-cap firms have historically been less volatile compared with EM large-cap, because the small cap category is more diversified. A quantitative approach can give investors access to some of the smallest-cap companies in the category, expanding the universe of potential investments, which we believe improves our ability to generate risk-adjusted returns."


chee_ooi

Chee Ooi

Managing Director of State Street Global Advisors and a senior portfolio manager for the AQE team

"Markets are inherently inefficient, and we’re able to go wherever we believe we can take advantage of those inefficiencies. In our Global Defensive Equity strategy, for example, we don’t start off by limiting ourselves to a low-volatility, defensive universe, and then seek to pick the best stocks within that limited universe. In our mind, that’s not optimal. We’d rather consider investment opportunities across the entire universe so that no stone is left unturned."


Kishore Karunakaran

Global Head of Portfolio Strategy, AQE

"Confucius said that real knowledge is knowing the extent of one’s ignorance. 'Ignorance' is a strong word, but in our world of investing or active money management, there is an enormous amount of uncertainty where investors can be wrong a lot. For us in AQE, it’s about working to stack the odds in our favor, so that when we are wrong, we are wrong a little less often."


Contact Us


For more than 30 years, research and innovation have been at the core of our efforts to deliver outperformance for our clients.

Contact your State Street Global Advisors relationship manager, or email us to learn how to invest in AQE.

Footnotes

*As of 12/31/2018, 78 out of 100 strategies outperformed on a gross-of-fees basis over a five-year horizon. Strategies did not outperform for all periods. Past performance is not a guarantee of future results.