DSI

DSI is a specialist quantitative investment manager that uses dynamic stock ranking models to consistently research, evaluate and monitor securities, ensuring a broad range of investment opportunities for clients. DSI strictly adheres to investment strategies for both diversified and concentrated portfolios that are intended to outperform specific benchmarks.

Consistency and repeatability of the process, as well as a detailed knowledge of our clients' requirements, promotes optimal implementation of the investment process.

Investment philosophy

The investment philosophy of DSI, based on over 30 years of statistical and quantitative research, is that undervalued stocks with improving fundamentals should outperform the universe from which they are selected. DSI has developed sophisticated quantitative modeling methods that synthesize strong overall portfolio factor characteristics and positioning, with keen insight to ever-changing internal market dynamics. Robust, dynamic multi-factor models identify potential undervalued and overvalued securities in different market environments. DSI believes that unintended risks should be neutralized, while intended risks should be compensated. The process is structured, disciplined, intuitive and seeks to generate alpha that is consistent and uncorrelated.

Investment process

DSI consistently applies a systematic, quantitative process to rank securities. This process includes the use of relatively independent factors to rank securities and dynamic algorithms to modify factor weightings that are used to generate security rankings. Throughout the portfolio construction and risk control process, DSI only uses index constituents and weights each stock relative to its score and risk characteristics.

Trading is the implementation of the investment process. Our computerized order management system is instrumental in seeking to provide low cost implementation of portfolio positions. DSI has a wealth of experience and a long history of effective, low-cost implementation of model portfolios.

Risk management

We control net exposure to sector, size, volatility, factor and beta using proprietary and third party risk analytics in our efforts to minimize unintended risks. Additionally, we utilize independent guideline and risk oversight by the UBS Global Asset Management Market Risk Control group.

Products

The team

Members of our globally integrated team have been carefully selected for their abilities and talents, providing a skilled and experienced portfolio management and research team that covers the myriad global and regional markets. DSI portfolios are team-managed, which contributes to the consistency and durability of the process through a combination of statisticians, directors, and programmers. Constant collaboration within the DSI team increases both the quality and stability of the investment process.