Quantitative
LCM equity research has developed a quantitative approach in order to tackle most valuation issues at stock, sector and market levels. Calculations are run weekly and use consensus data on all major equity markets. We issue a monthly report that summarizes valuation, growth and earnings trends on the three major equity markets: the US, Europe and Asia. Outstanding movements in historical valuation are outlined in order to derive sector arbitrages.
We develop statistical arbitrage models using econometric techniques to provide long short investment recommendations.
Depending on market conditions, Equity Strategy reports are issued to describe our equity scenario combining economics, market sentiment, quantitative and technical analysis.
Long Short Equity
We have developed a "Mean Reversing" statistical model for Cash Equity that compares short term and long term signals within stocks from the same sector. By combining various quantitative and qualitative filters we are able to offer weekly pair trading ideas on all listed markets.
Our model is flexible according to our customer needs and works on single stocks, baskets and ETFs. Thanks to a large database of market data, we are always conducting a back-testing analysis before suggesting any change to our model. Because markets fluctuate, we are constantly working with a dedicated team to improve results.