Honest and Quantamental Insights for Investment Managers

Philosophy & Process

Our Philosophy

Honest

We work diligently to always be transparent and honest and seek partners that are intellectually honest and want to be challenged.

Independent

Your commission wallet is a precious resource, and we recognize there is no shortage of vendors from which you can choose. Our business model revolves around the idea that excess returns are difficult to find, our skill-set and products are unique and that by helping our clients grow and build success, they will treat us well. We have no ulterior motives and our viability as an independent research organization is entirely predicated by your willingness to allocate attribution to our work.

Data-Driven
  • Hand cleansed data
  • Atypical data integrity to eliminate errors
  • Amplify the efficacy of our fundamental factors
Fundamental

Unlike traditional quantitative models which often begin and end in either value or momentum, the Kailash process works backward, assessing quality across dozens of metrics and then favoring shares whose quality may be mispriced. We believe this approach closely mirrors the process pursued by most fundamental investors who seek to arbitrage their incremental units of knowledge from their detailed study of fundamentals against the publicly recognized valuation and price.

Our Process

The process involves numerous orthogonal factors divided into five common-sense categories:
Balance sheet quality, earnings quality, valuation quality, analyst quality, and market quality.

Step 1

Verify and validate the underlying data

Step 2

Assess and compare each stock using the factors known for that stock

Step 3

Dynamically compare the qualities of each company using sophisticated algorithms

Step 4

Arrive at a relative ranking of aggregate attractiveness for each stock in the universe

Step 5

Most attractive stocks are a the top and least attractive stocks are at the bottom

*Important note: Users should be mindful that much of the process’s strength stems from the dynamic interaction of the fundamental variables