Strategy Overview:
Our strategy manages capital through a disciplined and
systematic-based approach to achieve consistent investment
returns through all market cycles. US stocks are evaluated
on key characteristics of financial measures, capital
efficiency, valuation, momentum, sentiment, and risk factors
that lead to positive or negative performance relative to
peers. Selected stocks are used to construct a market and
sector neutral portfolio.
Strategy Philosophy:
We have identified a diverse series of key 2nd derivative stock
factors that lead to positive performance and absence of these
characteristics lead to under performance relative to peers. Our
proprietary selection process utilizes individual factor scores to
create an overall ranking of stocks based on unique scoring
combinations of our factors. By including a diverse set of stock
characteristics into our systematic market neutral portfolio
construction, investment returns are intended to be uncorrelated
with individual sectors and the overall market.
Portfolio Construction:
Market and Sector Neutral- Selected stocks are matched dollar
neutral at the sector level. Individual position exposure is
controlled through equal weight positions.
No market timing- Scheduled rebalancing of new positions and
tolerance based weighting adjustments. Monthly screen for new
positions, weekly market and sector neutrality rebalance.
Risk Management:
Our market and sector neutral portfolio construction is intended to
mitigate systematic risk. Selected stocks are also screened for
liquidity, stock price minimum, and cost to borrow limits.
Company Overview:
Ferro Investment Management LLC. was formed in 2010 as an
asset management company based on the partners combined
67 years of successful investment management experience. Our
Market Neutral strategy was seeded by the partners and
managed for three years prior to seeking external investors in
June of 2013.
Management Bios:
Jeffrey Ferro
Mr. Ferro is Co-Founder and Managing Member of Ferro Investment Management LLC. with responsibility over
investment strategies, portfolio management and marketing. Prior to forming Ferro Investment Management LLC, Jeffrey
Ferro served as Vice President of HSBC Customized Execution Services (“HSBC”). In this role, he developed and tested
global algorithmic strategies for client and internal trading desks, consulted clients on global transaction analysis and
execution strategies, and managed the execution of global equity programs in developed, emerging, and frontier markets.
Prior to joining HSBC, Mr. Ferro was at Barclays Capital as Vice President on the Equity Proprietary Strategies Desk with
focus on trading small cap, healthcare, derivative, risk arbitrage and Latin American strategies. From 2005 to 2006, Mr.
Ferro served as Senior Trader of Healthcare and Consumer sectors for ING’s equity mutual funds and as Head Trader for
ING’s two internal hedge funds from 2003 to 2005. He started with ING as a small cap Trader for ING Pilgrim Funds in
1999 and also served as a Pricing Analyst with Bankers Trust from 1996 to 1999. Mr. Ferro graduated from Marist
College with a B.S. in International Business.
Dennis Ferro (CFA)
Mr. Ferro in Co-Founder of Ferro Investment Management LLC. and brings thirty-five years of investment experience.
From 2003 to 2008, Dennis Ferro served as President and Chief Executive Officer of Evergreen Investments, an asset
management company with over $200 billion in assets under management. From 1999 to 2003, Mr. Ferro served
Evergreen Investments as Chief Investment Officer and, prior to that, as Chairman of the Investment Policy Committee.
Before joining Evergreen Investments, Mr. Ferro was the Managing Director and Chief Executive of London-based Zurich
Investment Management, Ltd., where he oversaw the combination of Zurich Investment Management Ltd. European
assets with the international equity and fixed income assets of Kemper Investments. Mr. Ferro additionally has served as
the President and Chief Investment Officer of both CIGNA International Advisors, Ltd. and Japan Bankers Trust, Ltd.,
based in Tokyo, Japan. Mr. Ferro has been identified as one of the top one hundred mutual fund portfolio managers by
Barron’s financial magazine, and has appeared as a guest and commentator on CNBC, Bloomberg News, and CNN. Mr.
Ferro additionally sits on the Board of Directors of Principal Financial Group. Mr. Ferro holds a CFA designation and is a
member of the American Bankers Association, Investment Committee. Mr. Ferro earned his B.A. from Villanova
University, and an MBA in finance from St. John’s University.