There are two types of asset management: qualitative and quantitative.
Qualitative approaches essentially use fundamental analysis, which assumes a fair or reasonable price as the basis of any investment. The aim of the qualitative approach is to add value through the use of return forecasts that are supported by the fundamentals.
The risk with this approach, however, is that decisions are made subjectively or emotionally. Furthermore, forecasting the performance of an asset is extremely difficult and often turns out to be inaccurate.
It is for these reasons that PARSUMO Capital specializes in quantitative and rule-based asset management. We use financial mathematical models and statistical methods in order to be able to forecast risk conditions in the capital markets.
Quantitative investment approaches are, as far as possible, fact-based, highly structured and mostly rule-based. They do not, therefore, involve subjective value judgments or human emotions. They are consistent over time and react quickly. They are also able to process a lot of information. Quantitative approaches tend to be highly complex and, as such, are demanding and require a high level of expertise.