Product details

Aronson+Johnson+Ortiz (A+J+O) uses quantitative stock picking engines based on statistical stock return anomalies. They use neither outside research nor soft dollars. They have developed a relationship with brokers that fosters good execution quality of trades. Ted Aronson, the founder, is wondering whether the firm should expand further the long-short investment strategy. This case is about the most pressing strategic issues concerning the asset management industry: (1) the value added of stock picking; (2) the current disarray of actively managed, long-only funds. The proposal that these funds become long-short funds; and (4) the way research used by the asset management industry is financed.