Analytic U.S. Market Neutral Dynamic Volatility

The Analytic Investors team has been managing factor-based investments for over 20 years. The Analytic U.S. Market Neutral strategy takes equal long and short positions, with a net notional exposure target of zero. The strategy primarily adds value by buying stocks with the most attractive factor profiles and shorting stocks with the least attractive factor profiles, within a set of risk constraints. Performance is therefore driven purely by the performance of the valuation model and is only minimally affected by market-wide factors. Risk control is achieved through the use of strict constraints in a non-linear optimization process. It maintains beta, sector, and size neutrality while targeting a 6% to 10 % return over the risk-free rate, with volatility in the 6% to 10% range.

Strategy details

Note: CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Wells Fargo Asset Management is committed to providing information that is accessible to users of assistive technologies. The reports on this website have been released to the public in accordance with SEC regulations. These documents will be converted to alternative formats as soon as possible. In the meantime, should you require more immediate assistance, please contact us at 1-800-222-8222.

© 2019 Wells Fargo Asset Management (WFAM) is the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker/dealer and Member FINRA). Associated with WFAM is Galliard Capital Management, Inc. (an investment advisor that is not part of the WFAM trade/GIPS firm).

© 2006 - 2019 Wells Capital Management. All rights reserved.

Wells Capital Management® is a registered service mark of Wells Fargo & Company.