For more than 25 years, Federated MDT funds have employed a distinctive investment process that’s unemotional, disciplined and repeatable.
Federated MDT Funds
A bottom-up, fundamentally based, quantitatively driven process
Dan Mahr, managing director of research for Federated MDT, answers questions about this quantitative approach that seeks to eliminate behavioral influences at the heart of diversified stock-selection.
Our funds seek to evaluate companies according to fundamental and technical factors that measure value, growth and quality characteristics. A particular strength is our ability to choose companies with specific combinations of characteristics that can predict outperformance.
“The MDT process is highly repeatable and unemotional because we’re looking at math and statistics rather than making subjective human calls.”
Hi I'm Greg Sterzel, Client Portfolio Manager with MDT Advisors, a Federated Advisory Company.
Describe the Federated MDT investment process.
The Federated MDT investment process is highly differentiated. For more than a quarter of a century we've been managing U.S. equity portfolios that have been designed to be built from the bottom up. Rather than making top down macro calls. And really this process is highly repeatable and unemotional because we're looking at math and statistics rather than making subjective human calls. And what clients like most about our approach is that we're investing simultaneously in different types of companies form value to growth. And that, in our belief, coupled with being unemotional is what has allowed us to deliver relatively consistent results on behalf of our clients. 00:54
What sets MDT apart from other investment options?
MDT has a unique investment process. First and foremost, because we're quantitative, we've removed human biases from the investment decision making process. And by doing that we can avoid a lot of the mistakes that many managers may make. Secondly, we're investing simultaneously in different types of companies for a more diversified approach. Investment styles go in and out of favor just like asset classes. And no one knows which investment style is going to be in favor from one year to the next. Whether it's going to be value, growth, or any combination of the two. And so by investing in different types of companies, we feel that we can give investors a much smoother ride and potentially lead to more consistent results over time. 01:44
Views are as of February 6, 2019, and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. The quantitative models and analysis may perform differently than expected and negatively affect performance. MDT Advisers, a Federated Advisory Company. 19-20020 (2/19)