About Us

EquityCompass Strategies is a Baltimore based equity investment management firm and a wholly owned subsidiary of Stifel Financial Corp. We offer a broad range of portfolio strategies based on our systematic, research-driven investment process to institutional investors, financial advisors and individual investors. As of March 31, 2017, approximately $3.0 billion in assets are managed worldwide using investment strategies developed by us.

Investment Experience

EquityCompass was founded in January of 1998 as Portfolio Strategy Group at Legg Mason Wood Walker, Inc. to provide quantitative equity research. The empirical research we’ve developed underpins our investment recommendations and market analysis (first published Oct. 2001) and our investment portfolios and products (first offered for investment in Jan. 2007). Today, we offer investment strategies across the entire risk-reward spectrum in a variety of vehicles (including separately managed accounts, mutual funds, UCITS funds and Equity Linked Notes) to investors globally.

Investment Philosophy

We believe that investment decisions based on sound investment principles, empirically-tested research, and focused qualitative analysis can help minimize behavioral mistakes and reliance on macro forecasting and is the key to successful, long-term investing.

Empirical Research

Our approach to investment management (and our investment strategies) is based on the fundamental, technical and behavioral insights gleaned from the empirical research conducted by us, first published in December 2001. Before introducing new investment ideas, we ensure that they are based on sound investment principles, backed by academic research and conduct rigorous back testing to prove their ability to reliably predict returns over a range of market conditions.

Stock Selection

We seek to combine quantitative discipline and qualitative focus to provide value-added stock selection to pursue portfolio objectives. Quantitative models help determine the relative attractiveness of a stock (based on fundamental value, momentum, quality and misalignments between stock price and fundamental expectations and quality) as well as calculate risk characteristics. Portfolio Managers then consider qualitative research and use their judgment in making the final investment selections for a portfolio.

Portfolio Construction

Our portfolios have the responsibility of addressing their expected risk and reward performance consistent with their investment objective. To do this, we utilize an approach that is focused on bottom-up stock selection, diversified by sector, assets, and risk levels and equal-weighted positions that are periodically rebalanced.

Risk Management

We have developed a risk management framework that combines quantitative and qualitative approaches to measuring, monitoring and managing risk at every phase of our investment process. The framework emphasizes clearly defined risk tolerance guidelines, use of quantitative analytics and information technology to support risk estimation and monitoring and encourages collaboration and open communication among investment teams in making risk management a central part of the portfolio manager’s analysis of potential trades and portfolio construction.

Responsible Investing

We aim to deliver sustainable long-term financial, social and environmental returns by investing responsibly and sustainably. We believe that investing responsibly is to consider the wider contextual factors, including the stability and health of economic and environmental systems and the evolving values and expectations of the societies of which they are part, into the investment decision-making and ownership processes. We also believe that companies with high environmental, social and governance (“ESG”) standards are typically better run, have fewer business risks and ultimately deliver better value. We are signatories to the United Nations Principles for Responsible Investing (UNPRI) and have embedded the following responsible investment policies and procedures into our investment and portfolio company review processes subject to any client-specific instructions and following any local laws or standards applicable in the domiciles of assets or funds.

  • Proactively consider all material ESG factors during all phases of investment analysis and decision-making
  • Be active owners and incorporate ESG issues into our ownership policies and practices
  • Seek appropriate disclosure on ESG issues by the entities in which we invest
  • Promote acceptance and implementation of the Principles within the investment industry
  • Work together to enhance our effectiveness in implementing the Principles
  • Report on our activities and progress towards implementing the Principles