2024 Best Ideas: Rethinking Resiliency and Risk
PGIM's 2024 Annual Best Ideas highlights areas where PGIM asset managers believe investors will find promising opportunities as markets change rapidly.
During the 1990s, PGIM was among the earliest to explore quantitative investment techniques, in response to clients’ shifting needs. Thirty years and many market cycles later, quants continue to leverage their unique strengths to help investors navigate their complex financial challenges.
- With the rapid expansion of available company data over the past 15 years, a quant’s ability to quickly and efficiently synthesise data is of even greater importance in identifying both opportunities and risks.
- As investors balance their need for alpha with low-risk, low-cost strategies, a quant’s focus on delivering attractive risk-adjusted alpha at a lower fee can be an appealing solution.
- The combination of a broad view of the investment universe and a flexible approach to portfolio construction allows quants to build custom portfolios that can address investor challenges without sacrificing alpha or significantly deviating from tracking error targets.
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Source: PGIM Quantitative Solutions as of January 2024
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The views expressed herein are those of PGIM investment professionals at the time the comments were made, may not be reflective of their current opinions, and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or an offer to sell or a solicitation to buy any securities mentioned herein. Neither PFI, its affiliates, nor their licensed sales professionals render tax or legal advice. Clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation. Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy.
Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.
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