Running Alpha Introduces ComfortShares (TM) Portfolio Indexing Methodology: Shrinking the Gap between Individual Investor and Fund Manager Performance
by efrem on Monday June 12, 2017 at 12:56 am EST | Tags: Active, Active Alpha, Active Investing, Alpha, Beta, ETF, Factor Investing, Funds, Index Funds, Indexing, Multi-factor, Mutual Funds, Passive, Passive Investing, portfolio, Smart Beta
Toronto, CA June 11th, 2017
Serving as a passionate quantitative portfolio indexing practitioner and principal of the research intelligence and advisory firm, Running Alpha, Efrem Hoffman is actively engaged in developing an exciting new FinTech product, to be called ComfortShares (TM) that will also be the first ETF factor product that will address performance on a new anxiety-adjusted dimension and axis of change — the challenge of shrinking the gap between individual investor returns and fund performance.
The goal is to re-align the business alpha of both smart beta and active alpha managers with individual investor alpha, by not only targeting organic portfolio insurance against emotional and cognitive biases that get in the way of decision-making during episodes of volatility and draw-down, but also offering 360 degree protection during tranquil, low VIX market climates that display frequent episodes of flickering and unusual uncertainty.
The secret sauce lies not only in our proprietary quantitative metrics for constructing portfolios that exploit uncertainty for competitive advantage — via leveraging the collateral benefits of naturally occurring asymmetric sentiment and price feedback mechanisms embedded in the network effects of human and machine perceptions and marketplace interactions —