Markets Magazine
Intech's Adrian Banner Uses Volatility to Beat the S&P 500
The $51 billion institutional shop's CEO says his firm's math-based approach to investing enables it to pick up gains from stock price swings.
Adrian Banner tries out the piano at the Carlton Hotel in New York.
Robyn Twomey/Bloomberg MarketsThis article is for subscribers only.
Volatility represents risk for most investors. For Intech Investment Management, it’s a source of return.
Adrian Banner, Intech’s CEO, says his firm doesn’t pick stocks, read brokerage research, look at fundamental data, or forecast individual stock returns. Instead, Intech’s team starts with a universe of stocks, estimates their volatilities, and uses those numbers to come up with an optimized set of portfolio weights. Each week, they rebalance to the weights.