Ativo is built upon a long intellectual foundation with roots at leading academic institutions. Callard, Madden & Associates applied these insights beginning in 1971. The business developed out of the empirical securities analysis undertaken by Chuck Callard and Bart Madden. They sought to develop quantitative decision rules for making securities investments. Their creativity could finally be applied since it was now possible to empirically apply current academic theory to securities analysis. Key to this analysis was the development of securities databases and the computers required to process the data. The firm was one of the early users of the S&P Comstock database and continues its relationship with S&P. The result was the development of its own database of proprietary DCFROIs, Q-Ratios and Warranted Equity Values.

This research permitted the creation of model portfolios. The "Small Dynamic" model portfolio was initially published in 1986. 2006 marked the 20th anniversary of its development. This methodology is at the core of Ativo's "Small Dynamic" portfolio.

Ricardo Bekin was completing the coursework required for a PhD in Finance at the University of Chicago when he joined Callard Madden in 1990. He co-designed Callard Madden's PC-based analytical system and through this process became intimately familiar with the not only the nuances of the analytical methodology, but contributed to its development.

This intellectual challenge of staying current with financial theory and applying it to ever increasing availability of data was gratifying, but not sufficient. The rules that produced the "Small Dynamic" model were sound. Direct application seemed obvious. In 2001 Ricardo began successfully managing money based on the "Small Dynamic" criteria. In 2002 this operation was spun out of Callard Madden into his own company.

The year 2004 was a key turning point. Ricardo's mentor and friend, Chuck Callard passed away and the full responsibility for research leadership and investment management responsibility fell to Ricardo. Another University of Chicago alumnus, James Stuart, began working with the firm to provide operational assistance and develop the framework for Ativo's growth.

In 2005, Ativo was first selected by a large state pension system to manage assets using its "Small Dynamic" approach. The following year Pensions & Investments (November 13, 2006) reported that Morningstar had identified Ativo as the #1 Manager in their Composite Blend Equity Category for the five year period ending September 30, 2006. The proper application of financial theory to the creation of precise decision rules was clearly successful.