Mariner Quantitative Solutions, LLC

Mariner Quantitative Solutions uses quantitative tools to select investments, construct portfolios, and manage risk. The primary principals of MQS have worked together for 15 years, and have applied statistical and quantitative modeling techniques to equity management for over 11 years.

Investment Philosophy

We believe that the equity markets are inherently efficient. Market participants collect all available data, and stock prices reflect the collective wisdom of investors. Notwithstanding, there are two exploitable opportunity sets in our view. The first is that while all information is available to all, the ability of most investors to quickly and efficiently assimilate vast quantities of data and apply it to the decision process is severely limited. We believe our quantitative processes greatly improve our ability to collect, assimilate, and apply a staggering amount of data to the decision process. The second exploitable tendency in the market is that investors collect and evaluate not only quantitative data, but also qualitative data. Qualitative data includes built-in investor bias’ and variables related to behavioral tendencies. We believe this tendency is exploitable through quantitative modeling.

Targeted Solutions

Unlike most investment managers who attempt to apply their investment model to a broad objective, MQS seeks to provide a definable and measurable alpha to a targeted objective that is designed to complement and enhance an investor’s overall investment strategy. We first seek out investment strategies or techniques that are supported by extensive academic and street research. Our proprietary research then focuses on the necessary attributes to apply solid research to successful application. We call it “research to results.”

Strategic Active Tax Management: Since 1998 the principals of MQS Advisors have managed a highly efficient and very successful tax managed equity solution. Today MQS manages both a domestic and an international solution. For the taxable investor, maximizing after-tax alpha is perhaps the most exploitable opportunity available.

Dividend Growth: Extensive research has concluded that companies that return most of their earnings to shareholders in the form of dividends outperform their counterparts. The MQS model seeks to maximize the alpha generation in this attractive segment of the market.

Unbiased Enhanced Indexing: The MQS process for capturing the return potential of the market looks at the relative price disparity between the size of a company and its market capitalization. Our objective is to construct a portfolio that “behaves” like the broader market while seeking a positive return variance over a market cycle.

130-30: Alpha is derived by active decisions to overweight or underweight portfolio positions relative to the market. Extensive research has concluded that the 130-30 concept provides the manager the required latitude to fully apply their model in search of alpha. By being able to use both positive and negative information, and through more effective risk management, the 130-30 construct provides the manager with a broader opportunity set. The key to success, however, is experience. MQS has applied both our long and, most importantly, our short models to real portfolios for 5 years with great success. The MQS 130-30 is where real application meets with academic research.

Sincerely,

David W Schulz, CFA
President
MQS Advisors, LLC