Style Investing
The performance of certain ‘factors’ or ‘styles’ is well known and ‘value’, ‘momentum’ and ‘low volatility’ are just some of the characteristic groupings that investors are increasingly keen to exploit.
Our factor specialists are systematic in their approach. They refine raw style exposures into what we call ‘true styles’ – a methodology designed to better harness performance potential and enhance diversification benefits.
Today we offer a range of factor based solutions including regional, global and market neutral options.
Risk Disclaimer
The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.
Leveraging our proven capabilities in systematic investment strategies, the BMO AM Market Neutral Global Equity pooled fund offers investors the potential benefits of multiple style factors in a single portfolio.
Investing both long and short in global equities, the fund aims to deliver a positive absolute return over a three year period regardless of market conditions, and targets an annualized volatility of 10%.
Targeting “True Styles”
Style based investing, or grouping stocks by particular factors like value, momentum or low volatility, has been widely acknowledged to generate excess return potential, or “style premia”, independent of traditional asset classes.

Low Volatility
Low risk names outperform higher risk counterparts hampered by excessive borrowing and lottery effect.
Investing for absolute return: Long low-risk stocks and short high-risk stocks.

True size
Higher (diversifiable) risk of smaller companies leads to better returns of smaller companies as a group.
Investing for absolute return: Long small cap and short large cap stocks

True Momentum
Market fails to recognize importance of past trends – winners continuing to win and losers continuing to lose.
Investing for absolute return: Long stocks with good 12-month returns and short those with poor 12-month returns.

True Value
Excessive pessimism for prospects for cheap companies leads to higher returns.
Investing for absolute return: Long high and short low book to price stocks.

True GARP
Good growth, moderate valuations and quality financial statements – best of all worlds.
Investing for absolute return: Long high growth at a reasonable price (GARP) stocks and short low GARP names.
Hear from the Managers
Chris Childs
Chris Childs joined the company in 1993. He was a senior fund manager within the Multi-Strategy team before permanently transferring across to his current position as a Director within the Factor Investments team.
Chris is a graduate of the Bristol Business School and holds a Masters with distinction in Finance & Investment from Exeter University.

Solutions
BMO AM Market Neutral Global Equity Fund
BMO Global Long/Short Equity Fund
Insights

June Monthly Market Commentary: The Economy to Face Increasing Chill, not a Hurricane

May Monthly MAST Commentary: Rising commodity prices continue to support the inflation outlook while supply-chains are still exposed to disruptions

April Monthly MAST Commentary: Fear of War is Coming Down, but Fear Over the Fed’s Soft-landing is Rising

Value Hunting: The Return of Cautious Optimism

A Portfolio Manager’s Guide to War and Conflict
