Hilliard Lyons Automated Quantitative Analysis Software

Hilliard Lyons Automated Quantitative Analysis Software (AQA®)

The Automated Quantitative Analysis (AQA®) software provides a framework for making fact based investment choices from relevant, publicly available information in an effort to capitalize on discrepancies between value and price.

We believe that quantitative analysis is a common language by which all companies may be compared. We believe that, in the long run, investors value well-run companies as demonstrated by their operating histories. AQA® offers exposure to undervalued businesses, industries, and market capitalizations.

We believe it is possible to identify well-run companies on the basis of their operating histories. Our analysis attempts to duplicate the recognition of value by the market. We then measure the discrepancy between value and price and rank stocks on this basis. Our AQA® screening process begins with a universe of 1,200 stocks which includes the S&P Large-, Mid- and Small-Cap Indexed stocks, excluding insurance companies, banks, and REITs. The AQA® software calculates value using publicly available financial information from the past 32 quarters for every company in our universe. Within AQA®, it currently takes approximately thirty months for a stock calculated to be one of the top ten most undervalued to be moved by the market from undervalued to fairly valued. The goal of Hilliard Lyons’ Automated Quantitative Analysis is to accelerate the process of value recognition.

How does the Automated Quantitative Analysis software work?

Our AQA® software analyzes fundamental ratios and trends of the most recent eight year history of each company in its universe. The AQA® investment tool is limited to analysis of companies in the S&P Large, Mid and Small Cap Indexes and does not include estimates of balance sheet and income statement performance. AQA® software focuses on a company’s past financial performance; only publicly filed 10Qs and 10Ks (as amended), outstanding shares and dividend information are used in the calculation of value. AQA® does not incorporate other information regarding the companies, including company product material news and events that may be released subsequent to the most recent 10Q or 10K filing.


The selections generated by AQA® are based on companies’ past performance and do not guarantee future results.

Investing in securities involves risks including possible loss of principal. Today’s affluent investors are looking for comprehensive solutions to their financial needs— they need look no further than Hilliard Lyons.

Contact your Wealth Advisor for more details.

AQA® is an automated quantitative analytical tool which calculates the value of individual companies and compares these measures of value with the current stock price. Discrepancy between this calculated value and the current stock price determines the relative under or over valuation of each stock. Based on this analysis, stocks are ranked according to the discrepancy between calculation of their current value and current market price. The companies calculated to be most undervalued await investor recognition through an efficient market, over time.

What types of holdings are possible in the Automated Quantitative Analysis program?

The AQA® universe includes those stocks in the S&P Large, Mid and Small Cap Indexes, excluding service companies such as REITS, banks and insurance companies. Other investments not considered in the AQA® universe may have characteristics similar or superior to those being analyzed.

Why consider using the Automated Quantitative Analysis program?

AQA® offers a methodology for identifying what it calculates to be undervalued companies through:

  • Ranking and managing of investment choices
  • Offering an unemotional approach for making buy and sell decisions
  • Portfolio building across large, mid cap and small cap securities
  • Creating a portfolio of individual stocks that provides potential for long-term growth of capital

To find out more about the AQA® program, please contact your Hilliard Lyons Wealth Advisor.

Automated Quantitative Analysis® Investment Objective:

To seek to outperform the broad US domestic equity market indexes by buying and owning companies we calculate to be undervalued by the market, awaiting recognition of value in the marketplace.

Investment Philosophy:

We believe investors need two pieces of information to make any investment decision: Value and Price.

  • For publicly traded U.S. operating corporations, value can be derived from publicly available data.
  • Price is easily determined while the market is open. Stocks spend most of their time being overvalued or undervalued.
  • Within AQA®, it takes approximately thirty months, for a stock to move from undervalued to fairly valued.

Securities and advisory services offered through J.J.B. Hilliard, W.L. Lyons, LLC, a registered investment advisor and broker dealer. Member NYSE, FINRA & SIPC. Investing in securities involves risk, including possible loss of principal. ©2016. All rights reserved.


J.J.B. Hilliard, W.L. Lyons, LLC | Member NYSE, FINRA, & SIPC

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