All investment managers search for and nurture the development and refinement of an edge. Better Investment managers employ more edges. I took a look at our process and found 14 edges we use in models right now. I think we can continue to develop a few edges every year and some edges will occasionally expire. About 2 out of 3 of these edges are unique to Diversification Optimization and Gsphere.
Another part of the system is to have edges that compliment one another. In the same way that we want to increase the dimensionality of a portfolio with respect to risk factors, we want to increase the dimensionality of the edges used to create models. As we continue to quantitatively assess these edges we will be better able to shift the emphasis towards the best producing facets.