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STRATEGY FRAMEWORK

Organizing the equity universe
by investment manager behavior

The Importance of Strategy

Athena organizes the active equity mutual fund universe around the investment strategies being pursued by managers. This system, known as Strategy Based InvestingTM (SBI), is based on years of our own research and is consistent with independent studies conducted by top academic researchers from around the country.

Using a sophisticated, patented algorithm along with 60,000+ pieces of strategy information, Athena first identifies the self-declared strategy being pursued by active equity mutual funds. Once a mutual fund is strategy identified, Athena forms Strategy Peer Groups consisting of funds pursuing the same primary strategy. These groups are listed below. 

Athena Strategy Benchmarks, created from the composite return series of the Strategy Peer Groups, are designed to help investors appropriately benchmark active equity managers by grouping funds which pursue the same primary investment strategy. The Strategy Benchmarks are composed of all open-end active mutual funds pursuing a stated investment strategy.

Strategy Benchmark composition is not determined by arbitrary portfolio statistics but by active equity managers’ own stated investment strategy, which can be found in the funds’ prospectuses. Identifying and categorizing managers by their investment strategy leads to more meaningful peer groups within asset classes. Athena maintains and publishes 10 US Equity Strategy Benchmarks and 10 International Equity Strategy Benchmarks.

The resulting fund peer groups exhibit several notable advantages:

  • Managers are free to pursue their stated investment strategy
  • Managers following similar investment processes are grouped together
  • Strategy based peer groups remain stable over time, allowing for meaningful long-term comparisons
  • Managers can be ranked by the consistency and conviction with which they pursue their strategy

For current information on Strategy Benchmark performance and comparisons, download the Strategy Summary on the right side of this page. For greater detail about the construction and benefits of the Strategy Peer Group methodology, please refer to the Academic Bibliography page in the Athena Advisor Center.

Strategy Summary

As of December 31, 2022

Strategy Benchmark performance updated annually.