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Fidelity taps S&P 'Alpha Factor' model for stock research tool

First Published 20th April 2016

Alpha Factor Library from S&P Global Market Intelligence helps investors identify and analyze investment opportunities

New York - S&P Global Market Intelligence has announced that Fidelity Investments has selected the U.S. Value Model from its Alpha Factor Library to help customers to identify or validate attractively priced stocks with strong underlying fundamentals. Fidelity is now using the alpha factors components of this model to underpin a series of visual metrics on the Stock Snapshot Page of Fidelity.com. Clients can drill into each metric to reveal the underlying factors giving them insights on the value and financial health of a company, as well as details on future growth prospects and how well the company is being operated.

Developed by S&P Global Market Intelligence's Quantamental Research Team using the organization's Global Point-in-Time database, the Alpha Factor Library facilitates the construction of investment strategies and the identification of potential investments for 8 key investment styles including Value, Growth, Price Momentum and Quality. Fidelity customers can now view how a company compares to its sector peers in order to monitor specific securities and evaluate opportunities based on the company's fundamentals.

"The Alpha Factor Library is widely leveraged by institutional investors to formulate investment strategies, track the performance of investment styles and research industry-specific signals and trends for ideas that can easily be incorporated into their fundamental and quantitative portfolio construction processes," said Dave Pope, Managing Director of Quantamental Research at S&P Global Market Intelligence. "Fidelity is taking advantage of select elements of this unique body of knowledge to deliver cutting edge tools for alpha generation to its retail customers."

"As we constantly strive to bring our customers sophisticated yet user-friendly, cutting-edge tools for building and strengthening their own investment portfolios, we are enthusiastic about adding the Alpha Factor Library to our suite of research tools on Fidelity.com," said Franklin Gold, senior vice president of Research and Education at Fidelity."

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