At GMO, we recognize that innovation is the key to effectively adding alpha, and we place particular emphasis on technological innovation.
Since the early 1980s, GMO has developed quantitative models that aim to systematize our fundamental insights about the important drivers of valuation. Today, some of our most important research efforts go into developing next-generation technology to improve our clients’ investment outcomes.
Explore our content below and Contact Us or your GMO representative for more information. Intended for accredited investors.
Minimizing Shortfall: Deep Risk vs. Shallow Risk
Risk is commonly defined as "volatility," but we believe it is more aptly defined as "not having what you need, when you need it." Matt Kadnar and Martin Tarlie explained this alternative risk framework and how it differs from more traditional measures of risk. GMO's new Needs-Based Allocation platform, “Nebo,” allows financial advisors to build portfolios that minimize this risk.
The Evolution of Alpha Insights and the Use of Natural Language Processing
Natural Language Processing (NLP) is a particularly promising area on GMO’s ongoing research agenda. Prasun Agarwal and Serginio Sylvain, researchers on our Systematic Equity team, shared how we have built GMO's NLP infrastructure and how it provides the flexibility to develop a suite of differentiated alpha models.