Firm's Investment Philosophy

Fan Asset Management's investment philosophy is to add value through Dr. Fan’s General Capital Asset Pricing Model (GCAPM), which shows that if an asset’s expected return increases and/or its beta-risk premium decreases, higher asset prices will follow.   

Asset expected returns and beta-risk premiums are time-variant in nature, and are driven by the capital market’s macro environments as well as by individual firms’ fundamentals. Through top-down analyses of the capital market’s macro environments and bottom-up analyses of individual firms’ fundamentals, Fan Asset Management believes that superior portfolios can be constructed relative to any given investment mandate at any point in time.

At Fan Asset Management, we label our investment strategies as Sustainable Earnings Growth (SEG) Strategies because we believe that assets with superior sustainable earnings growth (SEG) capability, i.e. assets that have stronger earnings fundamentals and are under more favorable macro economic and business environments, have better chances of increasing their expected returns and/or lowering their beta risk premiums.