Commitment to Sustainable Alpha
Successful active management requires constant reinvestment in research to identify new investment ideas and diversifying signals.
Single investment process means that research innovations benefit all clients.
Research projects honing not just stock price forecasting but also risk, transaction cost, and cross-asset class models.
Alignment of Interests
100% owned by 36 active partners and 3 non-executive directors.
Long term view aligns interests with our clients.
Intellectual property protection maintains research / alpha advantage.
Unique Investment Process
Identify opportunities across countries, sectors, market caps, while controlling portfolio risk.
Research is responsible for developing, maintaining and enhancing the firm’s investment models, which produce forecasts of returns, risks and transaction costs. These responsibilities encompass a quantitative research team that is responsible for coming up with investment ideas, codifying those ideas into signals, back-testing the signals, and producing return, risk and trading cost forecasts based on the signals to drive trading decisions. Research also includes a quantitative development team that is responsible for the tools, libraries and software engineering techniques to support faster generation, evaluation, and productionization of investment ideas. Finally, Research manages the production and validation of our forecasts on an ongoing basis.
Investment Services is responsible for managing critical inputs to the firm’s investment process, managing the services provided by our outsourced middle-office, and supporting our portfolio management team, processes and investment initiatives.
Portfolio Management is responsible for managing investment portfolios and executing trade orders proposed by the firm’s quantitative investment models and portfolio optimization process, as approved by the firm’s investment professionals. The team is specifically involved in portfolio construction, risk management, portfolio finance, and cash and corporate action management as well as execution and best execution analytics.
Investment Analytics is responsible for overseeing and producing investment analytics to support the investment process. This responsibility includes portfolio attribution and other investment analytics relating to positioning, weights, shifts and tilts. Investment Analytics is also responsible for the preparation, review and approval of investment content used for external distribution.
Investment Processes is responsible for the automated processes used in investment decision-making and trading. These systems process large financial data sets, combine them with risk and return forecasts, and generate the firm’s trading program. Investment Processes also creates tools to analyze and manage the resulting portfolios.
The Compliance Systems team develops and maintains systems for our firm’s Compliance needs. The purpose of these systems is to automate, monitor, and integrate compliance-related workflows and operations into legal, client operations, marketing, and trading policies and practices.
The Enterprise Systems team is responsible for all technology initiatives for business units in the non-investment space. The team develops / integrates, manages and supports third-party and proprietary tools and systems to support the Human Resources, Finance, Funds and Client Operations departments.
Investment Systems is responsible for the automated processes used in investment decision-making and trading. The team builds software systems that support the firm’s entire investment process from portfolio construction to trading and trade analytics, middle and back office functions.
Technical Services & Cybersecurity
The Technical Services team is responsible for leading IT transformation, implementation and evangelism of our upcoming, next generation IT platform, which includes Service Desk, Desktop Engineering, Systems Administration, and Infrastructure/Cloud Infrastructure.
The Research Systems team manages application development technology supporting the Research business function. The group creates, maintains and deploys the technology that enables the business function to make informed and successful investment decisions.
Production Reliability Engineering
The Production Reliability & Engineering team provides production support, ownership of data platforms & production databases, and shared engineering services.
IT Risk & Governance
The IT Risk & Governance team provides technical project management, change management and audit & controls.
Administration & Facilities
The Administration & Facilities Team is the face and first point of contact for our firm and is responsible for continuously ensuring that the administrative operations and workspace are running effectively and efficiently.
Business Development & Relationship Management
Business Development & Relationship Management is responsible for developing new business and managing existing client relationships. This includes marketing the firm’s investment capabilities to prospective institutional investors, establishing investment consultant relationships, and delivering an exceptional client experience to the firm’s global client base. Additionally, the team develops and manages all marketing collateral and RFP responses.
Client Operations is responsible for supporting the day-to-day client service needs of the firm’s global client base. These responsibilities include client reporting, investment performance reporting and more broadly, supporting general client related activities such as onboarding and cash flow coordination.
The Finance Team is responsible for accounting, reporting, budgeting, forecasting, as well as audit and tax functions for the firm.
Funds is responsible for structuring, forming and monitoring the administration of the Arrowstreet Sponsored Funds. This work includes ongoing administrator oversight, financial statement preparation and audits, applicable regulatory and tax filings and board reporting. Funds is also responsible for the creation, maintenance and oversight of fund documents and for negotiating trading arrangements with brokers, prime brokers, counterparties and futures commission merchants.
Human Resources is a business partner responsible for organizational design, talent acquisition, performance management, and total rewards.