BlueCove is a scientific asset management firm bringing together market leading fixed income industry investment and engineering professionals, with the specific purpose of researching and developing state-of-the-art scientific investment processes applicable to fixed income investment management.
BlueCove is united by the strong belief that a scientific investment approach to each step of the investment process leads to better and differentiated outcomes for client portfolios. Our mission is to create a range of scientific fixed income investment solutions that give investors both an alternative and a complement to the traditional discretionary fixed income strategies that dominate their portfolios today.
The scientific method solves hard problems
Active scientific investing offers investors a clearly differentiated alternative to traditional discretionary strategies by benefitting from significant breadth and the application of insights that are otherwise difficult to capture.
Scientific investing has several distinguishing characteristics:
- It can improve returns by mitigating cognitive and behavioural biases that can compromise traditional discretionary investment strategies via the application of tested market insights across a large set of instruments and markets
- It harnesses large datasets to create innovative sources of alpha
- It applies modern portfolio construction techniques by targeting consistent risk-adjusted returns while mitigating transaction costs
- It has the potential to offer low correlations to traditional discretionary strategies while removing unwanted market exposures
- It adapts to changes in market behaviour by transparently attributing performance
BlueCove is custom-built for scientific investing
BlueCove's business model creates strong alignment of interest with clients, and we believe gives the firm a significant competitive advantage.
Each of BlueCove's employees has an equity interest in the firm. This facilitates collaboration and creates an outcome-oriented environment in which we are able to solve hard problems.
BlueCove specializes in scientific fixed income investing. Our core investment team is a group of professionals who have both collectively and individually been at the forefront of the development of the scientific fixed income industry to date.
BlueCove's technology is custom-built for scientific fixed income investing. Customised platforms enable us to be faster in our research cycle and more precise and flexible in our portfolio construction.
Each step of the scientific investment process, from data collection to trade execution, is subject to a recurring cycle of measurement, improvement, and optimization, aiming to maximize breadth, skill, and their application along the entire value chain. This creates a structured, firm-level investment process, with every phase subject to its own R&D cycle.
BlueCove's Firm-level Investment Process
BlueCove's product range
The scientific investment process enables us to develop products that span a full range of sophistication in order to deliver the desired outcome for clients. The modular nature of our strategy set allows BlueCove to create solutions with different risk characteristics and exposures, addressing a variety of needs from absolute or total return to benchmark oriented products.
BlueCove's people and values
BlueCove combines an experienced management team with scientific investment, research, and engineering teams that have been at the forefront of the industry's development to date. We are united via a deep-seated conviction that the future of asset management is scientific and that this approach leads to better client outcomes.
BlueCove is in the business of solving hard problems, and of doing so scientifically. In addition to a core investment team that has previously worked side-by-side for over a decade, the experience of our teams is wide-ranging. We believe teams of highly competent and cognitively diverse individuals with similar values create superior outcomes for clients. We share a core set of values that facilitate decision-making and are grounded by a common set of behaviors which serve to both create and preserve the firm's culture.
Investing in Harbor’s ETFs
Any information needed to identify Harbor’s ETFs can be found on our product pages for SIFI and SIHY. Harbor believes that active ETFs are a good way to access these compelling investment strategies while potentially being a better tax-advantaged investment. All fund materials, including performance information, factsheets, prospectuses, etc. are available on the SIFI and SIHY It is important to note that investors should consult a financial professional, an attorney, or tax professional regarding the investor’s specific situation.
Our ETFs are available through various channels including broker-dealers, investment advisers, and other financial services firms, including Envestnet, Fidelity, Pershing, Schwab, TD Ameritrade and more.
Important Information and Disclaimer
This overview is provided for information purposes only, and it is not an offer to, or solicitation of, any potential clients or investors, advisory or any other comparable or related services. No statement in this overview is or should be construed as investment, legal, or tax advice, nor is any statement an offer to sell, or a solicitation of an offer to buy, any security or other instrument, or an offer to arrange any transaction, or to enter into legal relations.
Without prejudice to the foregoing, any views expressed herein are the opinions of the investment adviser as of the date on which this overview has been prepared and are subject to change at any time without notice. Any forward-looking statements herein are inherently subject to material business, economic and competitive risks and uncertainties, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.
There can be no assurance that an investment strategy or approach will be successful. Historic market trends and behaviors are not a reliable indicator of future market behavior or performance, nor can they be used to reliably infer the future performance of any investment strategy or approach. There is no assurance that any circumstances, events, or objectives referred to herein will be achieved. The information contained herein regarding portfolio construction and the investment strategies to be pursued are for illustrative purposes only.
As of July 8, 2021.