Asia Quant + Fundamental Portfolio: 17 top picks for 2H26

Research evidence excerpt

Asia Quant + Fundamental Portfolio: 17 top picks for 2H26

27 July 2026

Asia Quantitative Strategy

This report takes a look at the advantages of implementing an investment approach Rupal Agarwal

+65 6326 7641 that combines both quantitative and fundamental research in the Asia Pacific region,

rupal.agarwal@bernsteinsg.com highlighting 17 stocks in 5 sectors (though dominated by Tech) that we believe are

particularly attractive right now for two reasons: They are 1) highly ranked on a

Neil Beveridge, Ph.D. quantitative basis, and 2) are companies where our Bernstein analysts have a strong

+852 2123 2648

neil.beveridge@bernsteinsg.com positive view. Specifically, the stocks selected need to be in the best two quintiles of the

Bernstein Alpha Model while also having an “Outperform” rating by our fundamental analyst

David Dai, CFA covering the company.

+852 2918 5704

david.dai@bernsteinsg.com Our last Quant + Fundamental portfolio outperformed the MSCI Asia benchmark by

43.5% on an equal-weighted basis and 119.3% on a market capitalization-weighted

Jay Huang, Ph.D. basis in 1H26 (Exhibit 1-Exhibit 3). +852 2123 2631

jay.huang@bernsteinsg.com

The Bernstein Alpha Model has been effective in differentiating winners from losers in Asia

Mark Li over the long term as well. Over the last 20 years, the best quintile outperformed by

+852 2123 2645 6.1% on a relative annualized basis with an information ratio of 1.35 (Exhibit 4). Since

mark.li@bernsteinsg.com 2013, stocks in the MSCI Asia Pacific universe that rank in the best quintile of our quant

model generated +7.0% annualized returns relative to the worst quintile (Exhibit 5).

Qingyuan Lin, Ph.D.

+852 2123 2654

qingyuan.lin@bernsteinsg.com We find that both quant and fundamental approaches to stock selection each add value