Question

What do you think of Numeric as a firm? What are its objectives? Who are its clients? 2. What products do Numeric investors? How do these products differ from each other? 3. How are long-short products of Numeric different from its long-only products? 4. How useful is Exhibit 3 in understanding the characteristics of the stocks included in the various funds of Numeric? 5. How has the firm performed in the past? 6. Would you characterize Numeric as long-term buy-and-hold investor or as an aggressive short-term trader? 7. What do Exhibits 4, 5 and 6 tell us about the usefulness of the momentum and value models? Why does the momentum model work better than the value model for the technology industry?

Answer 1

Numeric is a quantitative investment firm with objectives to generate returns for its clients. It offers long-only and long-short products and focuses on long-term strategies. Exhibit 3 is useful in understanding the stocks included in Numeric's funds. Numeric has performed well in the past and utilizes momentum and value models.

Numeric is a firm that specializes in quantitative investment strategies. Its objectives are to generate consistent returns for its clients by using mathematical models to analyze and trade stocks. Numeric's clients include pension funds, endowments, and other institutional investors.

Numeric offers a range of products to investors, including long-only and long-short strategies. Long-only products are focused on buying stocks with strong growth potential, while long-short products involve both buying stocks and selling short stocks in order to profit from both upward and downward price movements.

Exhibit 3 is useful in understanding the characteristics of the stocks included in the various funds of Numeric. It provides information on the stocks' market capitalization, price-to-earnings ratio, and other key financial metrics.

As a quantitative investment firm, Numeric is more focused on long-term buy-and-hold strategies rather than aggressive short-term trading. Its performance in the past has been generally positive, with solid returns for its clients.

Exhibits 4, 5, and 6 provide insights into the effectiveness of the momentum and value models used by Numeric. The momentum model works better than the value model for the technology industry because technology stocks tend to have higher volatility and faster price movements.