Factor investing is an approach that involves targeting specific drivers of returns across asset classes to improve portfolio outcomes, reduce volatility, and enhance diversification.

Moody Keller & Kline focuses two man types of factors: macroeconomic and style. Macroeconomic focuses include an analysis of the business cycle exposure, interest-rate movements, and default risk from lending to companies. Style focuses include finding stocks discounted relative to their fundamentals, smaller, high-growth companies, stocks with upward price trends, and stable, lower-risk stocks.

Systematic investing (also known as quantitative investing) is an investment approach that emphasizes data-driven insights, scientific testing of investment ideas, and advance computer modeling techniques to construct portfolios.

Fundamentally sound investment ideas are validated by quantitative testing amplifying human decision making but keeping behavioral bias in check. Technology-driven process helps scale investment insights across vast sets of securities creating highly diverse portfolios while avoiding hidden concentration risk.

Sustainable investing is investing in progress, and recognizing that companies solving the world’s biggest challenges can be best positioned to grow. Sustainable investing is about pioneering better ways of doing business and creating the momentum to encourage more and more people to opt in to the future we’re working to create.

There is growing recognition that ESG (environmental, social, and governance) research and analysis can potentially identify investment risk and generate excess returns. This is why future financial decision-makers are asking more of companies and requiring more sustainable investment solutions.

Alternative investments are more complex and less frequently traded than public stocks and bonds. But more and more investors are shifting to alternatives to boost returns, generate income, provide diversification from traditional investments, and achieve their goals.

Moody Keller & Kline deals with two main types of alternative investments. First, private assets such as private equity, private credit, infrastructure, and private real estate. Second, hedge funds that operate mainly in public markets, but use less traditional tools such as short-selling and leverage.