Sterling's Behavioral Finance team is based in Charlotte and manages complementary strategies to those offered through its fundamental research-driven teams. Our research and investment process is grounded in the principles of behavioral finance:
- Behavioral finance has roots in academia.
- Successful active management is possible by understanding and capitalizing on the psychology that drives many investment decisions.
- The key to the process is a proprietary framework that identifies and captures valuation and momentum anomalies.
Sterling Capital Uses Two Primary Factors In Our Behavioral Finance Stock Selection Models:
- Focus on portfolio construction (exposure to our behavioral finance based value and momentum factors) rather than individual stock selection.
- Investor's predictable irrationality leads to valuation and momentum anomalies that we believe will continue to exist.
- Through a disciplined portfolio construction process, one can capitalize upon the anomalies.
- Small Cap Value Diversified Alpha
- Large Cap Value Diversified Alpha
- International Diversified Alpha