The Value Equity process is a value strategy designed to add significant value through stock selection. We use a proprietary multi-factor model that, on a monthly basis, determines rational valuations for all Russell 1000 securities based on their exposures to stock characteristics (e.g., price-to-earnings) that have a proven impact on security returns. The characteristics ("factors") used fall into a broad range of categories covering both the growth and value spectrums. The difference between Analytic's approach and others is that Analytic considers 70+ stock characteristics simultaneously (there is no screening as our models are designed to "think multi-dimensionally") and employs statistical techniques to objectively determine which characteristics are preferred by the market. Stocks whose characteristics are being favored by the market will have a higher relative valuation. Our research has shown that, while investor preferences do change, they tend to change slowly over time. Thus, our valuations are based on a rolling 36-month window and we are not factor "timers". We incorporate many risk controls when constructing the portfolio, such as being size neutral, style neutral, sector neutral, beta neutral, volatility neutral versus the benchmark. In addition, we use volatility forecasts to adjust our "maximum relative holding" rule such that a large movement in any one stock does not significantly impact the performance of the portfolio. This translates into approximately a "plus or minus 0.5% of benchmark" rule for high volatility stocks and a "plus or minus 3% of benchmark" rule for low volatility stocks.