Los Angeles Capital Management

Most quant equity managers bet that historical factor premia persist. LACM does close to the opposite. Its process rests on a trademarked framework it calls Investor Preference Theory, implemented through its Dynamic Alpha Stock Selection Model, which assumes investor risk tolerances and factor preferences shift as markets move and rotates exposures to track what investors currently favor rather than what paid off in the past.

Spun up in 2002 and employee-owned, the firm runs that single engine across a wide family of global, regional, emerging-market and ESG mandates. It added a London arm, LACM Global Ltd, in 2015 to carry the process into European and international client work.