Does the DeMarche Rating System Use Quantitative Techniques or Fundamental Techniques?
The DeMarche system is based on quantitative databases and screens. Most of them are considered part of the fundamental research process. Founder and Chairman of DeMarche Associates Inc., Robert Marchesi, was a buy-side stock analyst at a major bank trust department in the 1960s and a buy-side analyst and portfolio manager at a major mutual fund company in the 1970s. Hence, the system he developed has fundamental origins. Based on that strong understanding of the core principles of stock stability, Marchesi also included progressive stock rating factors. Included among the 70 factors in the screening process are technical factors and behavioral factors such as earnings surprise and price momentum.
