Epsilon Asset Management

Our Philosophy

At Epsilon Asset Management, we believe that the key to successful investment lies in understanding the underlying dynamics of the market. Our philosophy is built upon the idea that investment managers can be a source of valuable insights, and by leveraging their collective knowledge, we can create a systematic approach to stock selection.

We take a bottoms-up approach, delving into the filings of active managers to identify the best investment ideas. By utilizing data science and statistical inference, we aim to create a portfolio that is not only robust but also repeatable. Our approach is designed to beat the market while providing daily liquidity and full transparency, ensuring alignment between our goals and those of our clients.

Our Process

Our process is centered around the concept of a systematic investment process, which allows us to pinpoint the optimal investment opportunities. We believe that the art of investing lies in understanding the underlying principles that govern the market. By using data science to establish rankings of domestic equity securities, we can identify the most promising investment opportunities.

Our approach is built upon the idea of factor investing, but instead of focusing on traditional factors such as value or momentum, we create rankings based on the revealed skills of all active managers investing in domestic equities. We believe that this bottom-up approach allows us to tap into the collective knowledge of active managers, providing us with a unique edge in the market.

Our Team

Our team is comprised of experienced professionals with a deep understanding of the investment industry. Our co-founders, Faryan Amir-Ghassemi and Michael Perlow, have extensive experience in quantifying investment strategies and have worked with institutional investors to examine predictive signals in active managers.

Faryan Amir-Ghassemi, co-founder of Epsilon Asset Management, has a strong background in investment analysis, having worked as a Director of Analytics and Quantitative Investment Strategies at Novus Partners. Prior to Epsilon, he was a Hedge Fund Analyst at Cambridge Associates, focusing on hedge fund research for the firm's institutional investor clients.

Michael Perlow, co-founder of Epsilon Asset Management, has a strong background in software development and quantification of investment strategies. Prior to Epsilon, he was a Quantitative Developer at Novus Partners, where he created much of the infrastructure for testing quantitative investment strategies.

Our Senior Advisor

William Cline, a Senior Advisor to Epsilon Asset Management, has an extensive background in the investment industry. Prior to becoming a Senior Advisor, he founded Clovis Capital Management in 2002, a bottom-up, fundamental, concentrated long-short equity manager. He has also served as the Chief Executive Officer and Principal at various firms, including Cramer Rosenthal McGlynn.

Our Research

We believe that research is the backbone of our investment approach. At Epsilon Asset Management, we are committed to sharing our insights and expertise through our blog, where we provide regular updates on market trends and investment opportunities.

Our research is centered around three key areas: strategy, markets, and economies. We believe that by understanding the complexities of the market and the economy, we can provide our clients with valuable insights that can help them make informed investment decisions.

Three Observations

Our Three Observations series is designed to provide a glimpse into the complexities of the market and the economy. In each installment, we examine a specific topic or market trend, providing our readers with valuable insights and analysis.

Our Three Observations series is centered around the concept of wrong-way risk, the impact of inflation on equities, and the role of active managers in the investment process. By examining these complex topics, we aim to provide our clients with a deeper understanding of the market and the economy, ultimately helping them make more informed investment decisions.

Conclusion

At Epsilon Asset Management, we believe that the key to successful investment lies in understanding the underlying dynamics of the market. Our philosophy is built upon the idea that investment managers can be a source of valuable insights, and by leveraging their collective knowledge, we can create a systematic approach to stock selection. Our approach is designed to provide our clients with a repeatable and robust investment strategy that is grounded in data science and statistical inference.