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Corporate Profile

Founded by Drs. Barr Rosenberg and Kenneth Reid in 1985, AXA Rosenberg Group LLC and its affiliated companies provide specialized investment management services to investors around the world. Our institutional clients include pension funds, profit sharing plans, government entities, insurance companies, foundations, and endowments. We also invest for retail clients through mutual funds and other vehicles that we manage or sub-advise.

AXA Rosenberg Statistics

  • Founded in 1985 to manage diversified equity portfolios
  • Global equity specialist within AXA Investment Managers’ multi-expert group of asset managers
  • Offices located in major financial centers around the world
  • Stable, committed team of 400 employees worldwide as of March 2008
  • Over $117 billion in assets under management as of March 2008

Investment Philosophy

We believe that it is extremely difficult to time markets or sectors consistently. So instead we create portfolios that have similar characteristics to the benchmarks selected by our clients and aim to outperform using stock selection. The cornerstone of our investment philosophy is very simple: Investors can profit by purchasing stocks that are underpriced.

We start from the view that markets are generally, but not perfectly, efficient. On average, the price of a stock reflects the market’s consensus view of how well the company is positioned to generate future earnings. While this is generally true, we know that a company’s stock price may be temporarily higher or lower than its fundamental or fair value, relative to similar companies. But in reasonably efficient markets, any discrepancy between the current price and the fair value of a stock is likely to be corrected over time. These often modest mis-pricings are the opportunities that the AXA Rosenberg investment process is ideally suited to uncover and act upon for our clients’ benefit.

It is our firm conviction that a company’s fundamentals drive its earnings and that the price paid for earnings ultimately drives performance. Therefore, we seek to capture both short-term earnings growth as well as long-term earnings advantage through rigorous comprehensive analysis. Our broad, fundamental perspective, coupled with our unique, computer-based ability to remain objective, has helped us build well-diversified portfolios that, on average, have generated more future earnings relative to cost than their market benchmarks over time.

Investment Process

AXA Rosenberg has created proprietary software to replicate the reasoning of financial experts, with two important advantages: First, our models can cover more stocks more quickly than even the brightest, best-trained team of analysts acting on their own. Second, we are able to eliminate the natural biases and unavoidable mental shortcuts that may arise in less systematic decision processes.

The best insights of the AXA Rosenberg investment team are encapsulated in our world-class Expert System, which integrates the entire research and investment process, from data collection to trading. With discipline and consistency, we apply fundamental analysis to global equity markets with the aim of delivering alpha for our clients. We analyze approximately 200 financial statement items to identify those companies that are currently inexpensive relative to their peers and combine the results with a near-term earnings growth forecast.

Our investment process combines three models:

  • a Valuation Model that identifies undervalued stocks with the potential for attractive long-term earnings within each industry by comparing current prices to current fundamentals;
  • an Earnings Forecast Model that identifies companies with superior and inferior year-ahead earnings; and
  • a Risk Model designed to construct portfolios with the maximum potential to outperform while minimizing risk.

Our goal is to build a portfolio with an expected future earnings advantage relative to the market. This process, based on solid economic analysis of company fundamentals, has been sustainable and repeatable.

Investment Professionals

AXA Rosenberg has attracted and continues to attract dedicated professionals with a passion for performance. Barr Rosenberg collaborates with a core team of investment professionals in our Research Center—a group with an average of 13 years of cumulative experience in securities, economics, and quantitative and data-related issues. The regional CIOs have an average tenure with the firm of 13 years. Additionally, portfolio managers are assigned to monitor all client portfolios and to oversee client relationships. Our entire investment team brings remarkable experience, longevity, and continuity to AXA Rosenberg’s unique investment style.