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Core Model

The Columbine Core Model is a style-specific model designed to forecast alphas in large-cap, highly liquid stocks. A proprietary, quantitative analytic system evaluates big-cap stocks on a series of fundamental and technical factors and synthesizes those individual measures into a comprehensive forecast of each stock's probable excess return (alpha) as far out as three years in the future.

The Core Model is unique among Columbine’s stock selection models in that it was designed to operate with cap-weighted portfolios, rather than equal-weighted. The Core Model’s rankings also incorporate a cap-bias neutralization technique. This risk control process insures that the model’s “buy” portfolio has a capitalization distribution that closely mirrors the benchmark’s.

The Core Model is appropriate for use by portfolio managers whose results are judged against a core manager peer group, or a big-cap style benchmark like the S&P 500 Index or the Russell 1000 Index.

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