Applied Enhanced Index Russell 1000 Strategy

Applied Enhanced Index Russell 1000 Strategy

Applied Enhanced Index Russell 1000 Strategy


The Applied Enhanced Index Russell 1000 Strategy seeks to achieve Russell 1000 Index-like returns after fees. By employing quantitative models, the team aims to identify 200-300 stocks that, in aggregate, have exposure to factors it believes will drive returns in the current market environment.

The final portfolio is designed to have a modest tracking error and align closely with the Russell 1000 Index in terms of industry, sector, style and company size.

Investment Approach

We believe common, market-oriented factors drive the majority of stock returns.

Over the last 20 years, market-driven factors have explained about 65% of the relative performance of global separate account managers1.

Our goal is to extract value from these return drivers.

Using proprietary methodology, we seek to identify those factors most likely to produce excess returns in the current environment. Through quantitative modeling and screening, we then tilt the portfolio toward stocks with exposure to those factors.

Potential to realize index-like returns, after fees

Every part of the investment process is oriented towards taking calculated risks and managing those risks over time.

Focused on limiting tracking error

To manage tracking error and overall volatility, the team seeks to closely align the portfolio's sector weightings, average market capitalization and beta with the Russell 1000 Index. 

Investment Process