CSO Capital uses quantitative models and strategies that are based on extensive internally funded scientific research. In the course of identifying profit opportunities, CSO Capital analyzes an enormous amount of data associated with thousands of financial instruments, along with various factors not associated with any one such instrument. Data is obtained from many countries throughout the world, and covers a wide range of asset classes. When this analytical process yields a new model the firm believes to be of predictive value, it becomes eligible for deployment within one or more trading strategies, in some cases along with a dozen or more other models involving some of the same financial instruments, but arising from different market inefficiencies.
The firm's quantitative strategies are for the most part based on:
The use of mathematical techniques to identify profit opportunities arising from subtle anomalies affecting the prices of various
The application of proprietary models designed to measure and control various forms of risk
The use of quantitative techniques to minimize the transaction costs associated with the purchase and sale of securities
The utilization of proprietary optimization technology to construct dynamically evolving investment portfolios based on these profit opportunities, risk factors, and transaction costs.
The firm has a significant presence in many of the world's capital markets, investing in a wide range of companies and financial instruments within both the major industrialized nations and a number of emerging markets. Its activities range from the deployment of investment strategies based on either mathematical models or human expertise.