ARC Asset Management
ARC Asset Management is an investment management firm with approximately $300 million in assets under management offering services to both institutional and individual investors. It is a subsidiary of Advisor Resource Council, an SEC-registered investment advisor, owned and led by practicing advisors, with more than $3 billion in advisory and brokerage assets under advisement.
ARC Asset Management offers a large cap core equity strategy, a small cap core equity strategy, a yield-oriented strategy with a focus on fixed income, and other portfolio solutions including hedged versions of the equity portfolios. The strategies are based on a common investment process which builds focused portfolios of 30-60 securities based on ARC’s artificial intelligence models enhanced by fundamental research performed by its highly experienced investment team. Investment Philosophy ARC Asset Management believes attractive risk-adjusted returns lie at the intersection of fundamental analysis and artificial intelligence. We employ this multi-disciplinary approach to construct diversified, high in active share portfolios, generally consisting of 25-50 of the team’s highest conviction names that are both fundamentally attractive and garnering increasing investor interest.
We use artificial intelligence to drive our investment process and human intelligence and intuition to perfect it. Our data science driven models identify attractive investment candidates by analyzing fundamental and valuation-based attributes which have shown a quantifiable edge in terms of stock selection. Our AI-driven crowd behavior models then identify those stocks that are experiencing increasing investor interest by performing fractal analysis on volume, price, and volatility data. We then apply traditional detailed fundamental analysis to the identified opportunity set to select a focused portfolio of timely investment ideas that is diversified across industry sectors.
Artificial Intelligence makes our fundamental analysis more efficient and scalable by allowing the investment team to focus on only those companies which are consistently growing their intrinsic value through time. Employing data science tools also helps protect returns by identifying “value traps” and stocks that are about to experience a negative trend change. The resulting process drives excess returns by solving for the pitfalls of both traditional fundamental analysis and quantitative strategies while utilizing the best attributes from each discipline.
Jean Paul Lagarde
Chief Investment Officer
Senior Portfolio Manager
Director of Research