In this month's Manager Spotlight, we’re featuring Kensington Asset Management and their Managed Income Strategy, which, "uses a proprietary trend following model to identify and act on prevailing market sentiment."
The firm specializes in data-driven, quantitative decision models that apply to the equity and fixed income markets. The underlying philosophy of relying on a quantitatively-driven investment decision process was shaped by the formative trading experience of Kensington’s founder, Bruce P. DeLaurentis
Trading methods and tools were primitive at the start of Mr. DeLaurentis’ trading career, but as he gained experience and was able to benefit from more sophisticated technology, his methods took on a more refined and quantitative approach. He built his first quantitative model using a programmable calculator. He advanced to more sophisticated technology with his first computer in 1981.
Although he had become a registered representative with a brokerage firm in 1977, it wasn’t until 1984 that he was sufficiently satisfied with his model-driven approach to launch Kensington. Mr. DeLaurentis achieved an enviable track record employing a quantitative methodology.