Empiric’s research team standard is the Kaizen philosophy. Kaizen is a Japanese term meaning “change for the better” or “continuous improvement.” It is a Japanese business philosophy regarding the processes that continuously improve operations (evolve) and involve all employees.
The name Empiric is short for Empirical. We believe that a rules based approach, combined with in-house research, greatly increases the probability of repeatability in long-term investment returns. Since Professor Paul Meehl, one of the fathers of behavioral finance, published what he referred to as “his disturbing little book” titled Clinical versus Statistical Prediction in 1954, numerous studies across industries have shown that statistics and computer models do a better job than clinicians or interviewers of objectively analyzing large amounts of data and accurately making predictive statements. Why? Emotion. Most recently, Richard Thaler, was the 2017 recipient of the Nobel Memorial Prize in Economic Sciences for his contribution to behavioral economics.
We have programmed and maintain an ever-expanding database of investment elements that are based on sound academic and behavioral financial theory as well as the learned art that comes from experience. Factors are tested for risk and efficacy after transactional costs relative to a given industry. Our proprietary research is the standard utilized in managing our global equity portfolios for clients. We strive to produce consistent alpha within an allotted risk budget relative to a given benchmark.