CenterBook addresses a central challenge for asset owners: how to access mid/long-term fundamental equity alpha without factor and market exposure that often dominates returns.

The Problem:

Fundamental investors are the best stock pickers and can rapidly adapt to changing market dynamics. However, they struggle to capture the excess return potential of their work due to behavioral biases, cognitive errors, and lesser expertise in risk management. By contrast, quantitative investors are experts in portfolio construction and risk management, but tend to lack sources of persistent, high-quality alpha and often adapt more slowly to non-linear changes in the market. Multi-managers provide consistency of performance, but restrictions imposed on their contributors' investment strategies limit the alpha they can access and returns are often reduced by multiple layers of fees.

Our Solution:

CenterBook believes that integrating the uniquely human skill of evaluating equities with the superior computational power and consistency of machines represents the next frontier for the investment management industry. CenterBook's Centaur funds are named after the chess "Centaur" strategy that combines human chess champions with computers running chess software to outperform each individually. CenterBook magnifies the potential of the "human + machine" approach by bringing together 25+ independent fundamental managers in its "open-architecture" platform. Its investment strategies deliver a value proposition to Limited Partners they cannot access elsewhere: optimized exposure to the ideas of multiple independent fundamental managers in a systematically constructed "center book" portfolio.