Think of an idea (factor, tool, model, etc.) and how it could be used to generate alpha. In other words, brainstorm.
Gather necessary quantitative data from reliable providers and information on the same subject from various sources.
Form an hypothesis that serve as an explanation to what’s observed after a review of existing knowledge.
Test the hypothesis to isolate the phenomenom across varied business cycles and market conditions.
Accept or reject the initial hypothesis based on results obtained and identify potential exogenous variables in play.
Reports findings in our research reports. Explain the reasoning behind the methodology and discuss results.