At CI Segall Bryant & Hamill Asset Management (“CI Segall Bryant & Hamill”), our diverse, active investment strategies are designed to deliver alpha, with a focus on highly inefficient markets. Our investment approach is driven by high-quality, proprietary research. We offer distinct strategies across a range of complex economic and market environments, while our customized, high-touch service capabilities enable us to nurture long-lasting client relationships.
We’re also backed by the strength and scale of CI Financial Corp., a leading global asset and wealth management company established in 1965, with total assets under management of CAD$546.1 billion (as at March 31, 2025).
Since inception in 1994, CI Segall Bryant & Hamill has built deep investment experience across the gamut of asset classes. This depth results in a comprehensive offering of niche and broad-market strategies to help construct well-diversified, all-weather portfolios. In this article, we’ll highlight our Quantitative Strategies team and their collective capabilities.
Why CI Segall Bryant & Hamill’s quantitative strategies?
It starts with effective, experienced leadership. The team is led by Scott Decatur, Director of Quantitative Strategies and primary architect of our quant-driven investment mandates: small-cap strategies in Developed International, Emerging Markets, U.S. and Global; and large-cap strategies in Developed International and Emerging Markets.
Dr. Decatur’s investment career began in 1997. Prior to joining our firm, his previous roles included Chief Investment Officer at Philadelphia International Advisors, and Director of Quantitative Research at Delaware Investments. He earned a B.S. and M.S. in Computer Science and Electrical Engineering from Massachusetts Institute of Technology, and a Ph.D. in Computer Science from Harvard University with a doctoral thesis focused on machine learning in the presence of noisy data.
Sophisticated investment process
The team believes the foundation of our Quantitative Strategies approach is a differentiated and repeatable investment process. Having been researched and tested globally – rather than tailored for a specific equity asset class – we believe the process is robust and versatile, and has been consistently applied in markets across the world. The strategies offer broad, diversified exposure to asset classes, including full exposure to the countries and sectors within these asset classes. The team believes its disciplined approach helps differentiate it from the competition for each asset class in which it invests, including small caps and large caps in the U.S., international, emerging markets and global equities markets.
Using its consistent and transparent investment approach, the team targets what it believes are fundamentally sound companies trading at attractive prices. The team believes the process is understandable to technical and non-technical audiences alike, facilitating clear articulation of the strengths and benefits of the team’s proprietary approach.
The flexible and adaptable process can also be applied to style-specific segments of markets (e.g., value or growth), country or sector specific applications, as well as long/short or extension (e.g. 130/301) mandates.
Stock selection model
The team’s quantitative model is derived from the team’s best practices of traditional fundamental analysis. The objective of the stock selection model is to achieve consistent long-term performance by systematically identifying undervalued stocks that also exhibit positive health and strength characteristics. Each security in a given universe is scored based on conventional valuation metrics, as well as momentum and profitability factors. This multi-factor approach targets well-rounded securities, not simply value companies or high quality-companies, but companies that are deemed to simultaneously embody both qualities.
Multi-Factor Approach Breakdown
For illustrative purposes only. Please see the Disclosures for additional information including quantitative model risks
Historically, the balance of valuation and company strength that the model looks for in each stock has helped deliver excess returns in a wide variety of market environments – up markets, down markets, value markets and even in many growth markets.
With regard to managing risk, the team’s proprietary risk model utilizes an alternative approach to conventional mean-variance optimization. It’s designed to reduce the risk of unpredictable swings resulting from targeting a tracking error level, instead allowing the team to focus on risk taking in an effort to maximize the strengths inherent in its stock selection model. By using long-term historical analysis, the team defines appropriate “guardrails” for relevant factors (e.g., sector, region, size, style), aiming to achieve active excess returns while taking reasonable levels of risk.
The Quantitative Strategies team conducts regular portfolio rebalances to help optimize performance, and monitors portfolios daily to analyze returns, attributions, absolute exposures and exposures relative to a portfolio’s benchmark.
The team has designed its proprietary optimization process to weigh expected individual stock returns against risk factors and other considerations like estimated transaction costs and client benchmarks. It seeks to achieve attractive potential returns while minimizing uncompensated risk through wagers made only where the team believes alpha can be systematically exploited. This non-traditional risk approach has been customized to help take advantage of the stock selection model’s strengths. The intended result is a portfolio with high exposure to a universe’s top-ranking stocks, while maintaining risk control objectives.
Key performance points*
The Quantitative Strategies team uses its proprietary investment process to generate returns. Over the calendar year 2024, the team achieved relative outperformance vs. the benchmark for each of its six strategies on both a gross and net basis.
Both of the team’s two longest-running strategies – Emerging Markets, International Small Cap – generated relative outperformance of greater than 7% gross of fees (over 6% net of fees) in 2024. As well, three strategies reached their three-year track record in 2024, with each generating what we’ve deemed significant alpha:
- Quantitative U.S. Small Cap (7.4% annualized alpha gross of fees, 6.7% net of fees)
- Global Small Cap (6.2% annualized alpha gross of fees, 5.2% net of fees)
- International Equity (3.9% annualized alpha gross of fees, 3.2% net of fees)
The Quantitative Strategies team puts its differentiated approach into action to help clients achieve their financial goals. Contact us to learn about areas of the market where the team is finding attractive opportunities.
* As of December 31, 2024. Please refer to the following section for the standardized performance of the strategies referenced herein. See the Important Disclosures for additional details regarding fees, performance, benchmarks and other important information. It is not possible to invest directly in an index. Indexes are unmanaged and do not incur fees and expenses. Past performance does not guarantee future performance.
Standardized Strategy Performance
Emerging Markets Strategy (As of March 31, 2025)2
Annualized Performance (%)
Periods greater than one year are annualized. Strategy Inception July 1, 2011. MRQ=Most Recent Quarter; SI=Since Inception.
Please refer to the Important Disclosures for additional details regarding fees, performance, benchmarks and other important information. It is not possible to invest directly in an index. Indexes are unmanaged and do not incur fees and expenses. Past performance does not guarantee future performance.
Emerging Markets Small Cap Strategy (As of March 31,2025)2
Annualized Performance (%)
Periods greater than one year are annualized. Composite performance begins on June 1, 2016. MRQ=Most Recent Quarter; SI=Since Inception.
Please refer to the Important Disclosures for additional details regarding fees, performance, benchmarks and other important information. It is not possible to invest directly in an index. Indexes are unmanaged and do not incur fees and expenses. Past performance does not guarantee future performance.
International Equity Strategy (As of March 31, 2025)2
Annualized Performance (%)
Periods greater than one year are annualized. The inception date for the SBH international composite was October 27, 2021. Calendar year 2021 performance is for the period beginning October 27, 2021 and ending December 31, 2021. MRQ=Most Recent Quarter; SI=Since Inception.
Please refer to the Important Disclosures for additional details regarding fees, performance, benchmarks and other important information. It is not possible to invest directly in an index. Indexes are unmanaged and do not incur fees and expenses. Past performance does not guarantee future performance.
International Small Cap Strategy (As of March 31, 2025)2
Annualized Performance (%)
Periods greater than one year are annualized. Strategy Inception May 1, 2008. MRQ=Most Recent Quarter; SI=Since Inception.
Please refer to the Important Disclosures for additional details regarding fees, performance, benchmarks and other important information. It is not possible to invest directly in an index. Indexes are unmanaged and do not incur fees and expenses. Past performance does not guarantee future performance.
Quantitative U.S. Small Cap Strategy (As of March 31, 2025)2
Annualized Performance (%)
Periods greater than one year are annualized. Strategy Inception January 1, 2022. MRQ=Most Recent Quarter; SI=Since Inception.
Please refer to the Important Disclosures for additional details regarding fees, performance, benchmarks and other important information. It is not possible to invest directly in an index. Indexes are unmanaged and do not incur fees and expenses. Past performance does not guarantee future performance.
Global Small Cap Strategy (As of March 31, 2025)2
Annualized Performance (%)
Periods greater than one year are annualized. Strategy Inception January 1, 2022. MRQ=Most Recent Quarter; SI=Since Inception.
Please refer to the Important Disclosures for additional details regarding fees, performance, benchmarks and other important information. It is not possible to invest directly in an index. Indexes are unmanaged and do not incur fees and expenses. Past performance does not guarantee future performance.
1 Definition: A 130/30 strategy has long exposure equal to 130% of the capital value and short exposure equal to 30% of the capital value. This structure can provide net long exposure of 100%, like a traditional long-only strategy, but looks to also provide additional alpha by increasing its gross exposure on both the long and short sides.
2 Source: FactSet, MSCI
Important Disclosures
This information is intended for use in jurisdictions where distribution or availability is consistent with local laws or regulations. Products and services described herein may not be available to all investors.
Fee Disclosures
Emerging Markets: Gross results do not reflect the deduction of management fees, are shown net of trading costs, and include the reinvestment of all dividends and interest. Net returns are shown net of management fees and are calculated by applying the current fee schedule applicable to the Emerging Markets separate accounts which is 0.70% on the first $50 million of assets, 0.60% on the next $50 million of assets and 0.55% over $100 million of assets. Actual fees paid will vary. All information is based on U.S. dollar values. Segall Bryant & Hamill acquired the International Small Cap and Emerging Markets portfolios and team from Philadelphia Investment Advisors on June 30, 2015. Performance results before this date reflect returns generated by the portfolio managers at Philadelphia International Advisors.
Emerging Markets Small Cap: Gross results do not reflect the deduction of management fees, are shown net of trading costs, and include the reinvestment of all dividends and interest. Net returns are shown net of management fees and are calculated by applying the current fee schedule applicable to the Emerging Markets Small Cap separate accounts which is 0.80% on the first $50 million of assets, 0.70% on the next $50 million of assets and 0.65% over $100 million of assets. Actual fees paid will vary. All information is based on U.S. dollar values.
International Equity: Gross results do not reflect the deduction of management fees, are shown net of trading costs, and include the reinvestment of all dividends and interest. Net returns are shown net of management fees and are calculated by applying the current fee schedule applicable to the International Equity separate accounts which is 0.65% on the first $50 million of assets, 0.55% on the next $50 million of assets and 0.50% over $100 million of assets. Actual fees paid will vary. All information is based on U.S. dollar values.
International Small Cap: Gross results do not reflect the deduction of management fees, are shown net of trading costs, and include the reinvestment of all dividends and interest. Net returns are shown net of management fees and are calculated by applying the current fee schedule applicable to the International Small Cap composite accounts which is 0.80% on the first $50 million, 0.70% on the next $50 million and 0.65% over $100 million of assets. Actual fees paid will vary. All information is based on U.S. dollar values. Segall Bryant & Hamill acquired the International Small Cap and Emerging Markets portfolios and team from Philadelphia Investment Advisors on June 30, 2015. Performance results before this date reflect returns generated by the portfolio managers at Philadelphia International Advisors.
Quantitative U.S. Small Cap: Gross results do not reflect the deduction of management fees, are shown net of trading costs, and include the reinvestment of all dividends and interest. Net returns are shown net of management fees and are calculated by applying the current fee schedule applicable to the Quantitative U.S. Small Cap separate accounts which is 0.70% on the first $50 million of assets, 0.60% on the next $50 million of assets and 0.55% over $100 million of assets. Actual fees paid will vary. All information is based on U.S. dollar values.
Global Small Cap: Gross results do not reflect the deduction of management fees, are shown net of trading costs, and include the reinvestment of all dividends and interest. Net returns are shown net of management fees and are calculated by applying the current fee schedule applicable to the Global Small Cap separate accounts which is 0.75% on the first $50 million of assets, 0.65% on the next $50 million of assets and 0.60% over $100 million of assets. Actual fees paid will vary. All information is based on U.S. dollar values.
Benchmark Definitions
It is not possible to invest directly in an index. Indexes are unmanaged and do not incur fees and expenses.
The MSCI Emerging Markets (MSCI EM) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance in the global emerging markets. It is not possible to invest directly in an index.
The MSCI Emerging Markets Small Cap Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of small cap stocks in the global emerging markets. It is not possible to invest directly in an index.
The MSCI EAFE Index is an equity index which captures large and mid cap representation across Developed Markets countries around the world, excluding the U.S. and Canada. The index covers approximately 85% of the free float-adjusted market capitalization in each country.
The MSCI EAFE Small Cap Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of small cap companies in developed markets across Europe, Australasia, and the Far East. It is not possible to invest directly in an index.
The Russell 2000 Index is a market index that measures the performance of the 2,000 smaller companies included in the Russell 3000 Index.
MSCI ACWI Small Cap Index is an equity index which measures the performance of the small cap segment across 23 developed markets and 24 emerging market countries. The index covers approximately 14% of the free float-adjusted market capitalization in each country.
Risk Disclosures
Market conditions can vary widely over time and can result in a loss of portfolio value. Investing in equity securities is speculative and involves substantial risk. The market value of investments will fluctuate as stock markets fluctuate. Investments in small cap companies involve risks and volatility greater than investments in larger, more established companies. Investments in value companies can be undervalued for long periods of time and more volatile than the stock market in general.
Quantitative models including stock and country selection ranking models use mathematical and statistical techniques to identity investment opportunities may not yield the desired goals. The accuracy of quantitative model depends on the quality and reliability of the data used for analysis.
Investment Risks
The value of equity securities is sensitive to stock market volatility. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical, currency exchange rates or other conditions. In emerging countries, these risks may be more significant. Smaller companies are generally subject to greater price fluctuations, limited liquidity, higher transaction costs and higher investment risk than larger, more established companies.
Disclaimers
All opinions expressed in this material are solely the opinions of CI Segall Bryant & Hamill. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of the manager’s opinions. The opinions expressed are based upon information the manager considers reliable, but completeness or accuracy is not warranted, and it should not be relied upon as such. Market conditions are subject to change at any time, and no forecast can be guaranteed. Any information perceived from this material does not constitute financial, legal, tax or other professional advice and is not intended as a substitute for consultation with a qualified professional. The manager’s statements and opinions are subject to change without notice, and Segall Bryant & Hamill is not under any obligation to update or correct any information provided in this material.
Advisory services offered through Segall Bryant and Hamill LLC, a registered investment adviser (“RIA”) with the U.S. Securities and Exchange Commission (“SEC”).
The future performance of any investment, including those recommended by us, may not be profitable or suitable or prove successful. Past performance does not guarantee future performance. All investments involve risk, including the possible loss of capital.
