TWIN Capital’s Proprietary Portfolio Management System Has Outperformed for Fifteen Years

December 11, 2018

Geoffrey Gerber is President and Chief Investment Officer of TWIN Capital Management, Inc. Having founded TWIN in 1990, Dr. Gerber oversees the entire quantitative investment process and general management of the firm. Recognized as a specialist in institutional quantitative investment management, he has been quoted in the financial press and authored numerous articles in books and journals.

Outside of TWIN, Dr. Gerber is a faculty member for the Aresty Institute’s Wharton Executive Education Program on Investment Strategies and Portfolio Management. He participates in a number of foundations’ investment committees and boards, including the Burroughs Wellcome Foundation, the Jewish Federation of Greater Pittsburgh and the Jewish Healthcare Foundation.

Dr. Gerber is also a member of the Editorial Advisory Board of the Journal of Investment Consulting. He holds a Ph.D. in economics and finance, University of Pennsylvania, and a B.S. in economics from the University of Buffalo.  In this exclusive 2,775 word interview in the Wall Street Transcript, Dr. Gerber details his proprietary portfolio development took and the top picks it is currently predicting.

“The heart of our investment philosophy is that systematic application of in-house quantitative research coupled with rigorous risk control in portfolio construction affords the best chance of achieving excess return over a benchmark or market index on a risk-managed basis.

Our job is to identify and capture the reliable and predictable sources of returns while minimizing any impact for more arbitrary sources of risk. TWIN differentiates itself from the mainstream investment community with the application of our proprietary Fundamental Tilt, which provides the top-down thematic perspective that complements our bottom-up model.”

This proprietary portfolio investment philosophy has delivered consistent out performance:

“The advantage that TWIN provides can be seen by our Prime strategy. Our Prime strategy has outperformed the market on average in up months, in down months and in sideways months, and that is a fairly unique opportunity for institutional investors. Typically, managers outperform the market on the upside because they’re growth-oriented or they outperform the market on the downside because they’re defensive or value-oriented.

Our TWIN Prime strategy, which is our largest strategy, has generated over almost a 15-year period outperformance in up and down markets. So having the ability to have positive upside capture — meaning outperform the market on average in up markets — as well as outperform in down markets is a feature that our institutional clients really value.”

To get more details on this strategic portfolio development, read the entire 2,775 word interview in the Wall Street Transcript.