Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • July 1997 (Revised August 1997)
  • Case
  • HBS Case Collection

numeric investors l.p.

By: Andre F. Perold and Brian J. Tierney
  • Format:Print
  • | Pages:37 
ShareBar

Abstract

Numeric Investors manages equity portfolios with the use of a momentum model and a value model. The momentum model is based on earnings surprise and analysts' revisions of their earnings estimates. The firm offers long-short as well as long-only strategies, and its approach involves high portfolio turnover. Numeric has experienced rapid growth in assets under management, which has resulted in higher transaction costs. The firm has already closed many of its products to further investment, and needs to decide where to go next. The case provides a rich setting within which to discuss value investing, momentum investing, the efficiency of analysts' earnings estimates, stock market efficiency, long-short investing, transaction costs, the relationship between assets under management and performance, performance fees, and the business strategies of investment management firms.

Keywords

Asset Management; Cost; Equity; Financial Strategy; Investment; Investment Portfolio; Management; Product Development; Performance Efficiency; Business Strategy

Citation

Perold, Andre F., and Brian J. Tierney. "numeric investors l.p." Harvard Business School Case 298-012, July 1997. (Revised August 1997.)
  • Educators
  • Purchase

About The Author

Andre F. Perold

→More Publications

More from the Authors

    • April 2014
    • Faculty Research

    Oceanbulk Maritime S.A. (B)

    By: Andre F. Perold
    • July 2013 (Revised June 2014)
    • Faculty Research

    Oceanbulk Maritime S.A.

    By: Andre F. Perold
    • July 2013
    • Faculty Research

    B. Zaitz & Sons Co. Farmland Investing

    By: Andre F. Perold
More from the Authors
  • Oceanbulk Maritime S.A. (B) By: Andre F. Perold
  • Oceanbulk Maritime S.A. By: Andre F. Perold
  • B. Zaitz & Sons Co. Farmland Investing By: Andre F. Perold
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Digital Accessibility
Copyright © President & Fellows of Harvard College