Seizing fundamental and quant alpha in developed equity markets

Robeco

Research

17 Pages

Robeco examines how blending fundamental stock selection with quantitative signals can help investors pursue alpha in developed equities. With MSCI World forward P E at 18.09 and expected returns around 6.5%, beta alone may feel less generous. Their evidence suggests the mix can improve consistency versus leaning on one style.

Date published: June 2025

Key Takeaways

Valuations raise bar: Higher starting valuations can shift the focus from market return to manager added value.
Complementary engines: Quant emphasizes breadth and factor discipline, while fundamental emphasizes depth and conviction.
Diversification boosts IR: A blended approach improved risk adjusted results versus either style on its own.
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