If you’re interested in financial markets, you’ve likely heard of Norstrat. Norstrat is a global investment management firm that provides investment strategies to institutional investors, including pension funds, endowments, and foundations. Their investment philosophy is grounded in economic theory and backed by rigorous research. In this beginner’s guide to Norstrat, we will explore what Norstrat is, what they do, and what sets them apart from other investment management firms.
What is Norstrat?
Norstrat was founded in 1995 by Dr. Paul Marshall and Ian Wace, two former economics professors at the London School of Economics. The firm’s name combines “Northern Strategy,” reflecting its roots in the UK, and “Strategic Investments.” Since its founding, Norstrat has become a global investment management firm with offices in London, New York, and Hong Kong.
What does Norstrat do?
Norstrat specializes in providing investment strategies to institutional investors, including pension funds, endowments, and foundations. Their investment philosophy is grounded in economic theory and backed by rigorous research. Norstrat’s investment strategies are designed to achieve superior returns while managing risk. They do this by investing in a diversified portfolio of assets across multiple asset classes, including equities, fixed income, commodities, and currencies.
What sets Norstrat apart from other investment management firms?
Norstrat’s investment philosophy is grounded in economic theory and backed by rigorous research. They believe that markets are not always efficient and that it is possible to generate alpha (outperformance relative to the market) through active management. Norstrat’s investment process is characterized by a bottom-up approach to security selection and a top-down approach to asset allocation.
Norstrat’s bottom-up approach to security selection involves analyzing individual companies to identify those undervalued or overvalued relative to their intrinsic value. This analysis examines a company’s financial statements, industry trends, and competitive position. Once a company has been identified as undervalued or overvalued, Norstrat will either buy or sell the stock, depending on its view of its prospects.
Norstrat’s top-down approach to asset allocation involves analyzing macroeconomic factors, such as interest rates, inflation, and economic growth, to determine the optimal mix of assets across multiple asset classes. This analysis involves assessing the current economic environment and forecasts future economic trends. Once an optimal asset allocation has been determined, Norstrat will allocate capital accordingly.
A strong emphasis on risk management also characterizes Norstrat’s investment process. They use various risk management tools to control risk, including diversification, position sizing, and stop-loss orders. By managing risk, Norstrat can achieve superior returns while minimizing downside risk.
Conclusion
Norstrat is a global investment management firm that provides investment strategies to institutional investors. Their investment philosophy is grounded in economic theory and backed by rigorous research. Norstrat’s investment strategies are designed to achieve superior returns while managing risk. They do this by investing in a diversified portfolio of assets across multiple asset classes, using a bottom-up approach to security selection and a top-down approach to asset allocation. By managing risk, Norstrat can achieve superior returns while minimizing downside risk.
