At ZPR Investment Management, we believe that exceptional investment results can only come from using a superior process based on insight into investor behavior. To that end, we have spent over 30 years researching how equity prices react in a variety of situations and under different conditions.
From this research we have created a toolkit for superior investment decision making. Some tools are highly specific, suggesting that they be used in an exact, disciplined manner. These are the tools used in our quantitative investment strategies. Other tools are broad and are best used as a starting point for further analysis. Here we will refine the decision making with many smaller insights and our own experience to achieve the best results. This is the basis of our fundamental investment strategies.
At ZPR we are grounded in historical investment research, which tells us what has and hasn’t worked over time. This leads us to create investment strategies that have two important qualities.
First, they invest in asset classes that have attractive long term returns, where we would want to invest our own money.
Second, they operate in areas of market inefficiency where we believe our research driven techniques for picking stocks can help us outperform the relevant benchmarks.
An example is small cap value in the U.S. If you compare the performance of $1 invested at year-end 1927 through 2015 you discover that as an asset class it has greatly outperformed the other style quadrants:
|Large Cap Growth||$2,059|
|Large Cap Value||$9,968|
|Small Cap Growth||$2,444|
|Small Cap Value||$81,431|