River & Mercantile Asset Management is a boutique investment specialist, which was incorporated in 2006. It now forms the asset management part of a wider group, following its merger with institutional- adviser P-Solve, and stock market listing in 2014. The fund management team specialises in UK and global equities and has around £2.5bn of assets under management.
The investment team has developed an individual philosophy and process called PVT: Potential, Value and Timing. They have a quantitative process which underpins all their investment choices.
We are usually very wary of quant screens when it comes to stock-picking, as they are backward looking and tend to do badly in market inflection points. However, R&M understand the limitations of their model and have evolved it over time. Their managers are still allowed to express their own views and, as the team is relatively small, the screen does help to lighten their workload. The UK smaller companies managers are particularly impressive.
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