Our Technology Advantage
Hedgeable leverages proprietary technology to drive our industry leading investing platform.
Hedgeable's groundbreaking risk management technology is used to manage all of the dynamic strategies that we offer to managed account clients. Called our Dynamic Advisor, this highly proprietary system cannot be found at any other firm. The system is so powerful, it can manage any group of liquid securities in any portfolio. Using dynamic asset allocation, the Dynamic Advisor provides us with insights on when to shift money within a portfolio between risky assets and non-risky assets. By doing this, we can eliminate most large portfolio drawdowns, while still capturing much of the portfolio's upside. Drawdowns are the single biggest killer of portfolio returns. Long-term portfolio growth can only be achieved by mitigating the harmful effects of drawdowns.
Leveraging our experience at some of the most innovative investing firms in history, such as Bridgewater Associates, Hedgeable is at the forefront of risk and drawdown analysis. Hedgeable's proprietary risk score can be calculated on the fly for any security or portfolio. We do our own proprietary value at risk analysis (VaR), maximum potential loss analysis, diversification analysis, exposure analysis, and sensitivity analysis. On our internal platform, our investing team has the ability to compute live drawdown statistics and dozens of ratios for any liquid portfolio. In our proprietary security center, we can get risk data on over 100,000 worldwide securities on the fly, sort from dozens of benchmarks, create watchlists, print tear sheets, and download the data to customize it.
Our proprietary hedging tools use highly complex methods to augment risk management for any investment strategy that we more passively manage. For example, we do not turnover our Value Stock Strategy more than once per year, so we will use our hedging tools as needed to filter out systematic risk. Our hedging analysis can be performed on any portfolio. Our technology produces simple ETF hedging suggestions that we can deploy in times of market or asset class crisis. Our proprietary technology system provides our investing team with detailed analysis, charts, and tables.
Our groundbreaking alpha generation technology is used to manage all of the tactical strategies that we offer on our platform. Called our Alpha Allocator Technology, this highly proprietary system cannot be found at any other firm. The system is so powerful, it can manage any pool of liquid securities. Using Tactical Asset Allocation, the technology system pinpoints weaknesses within a portfolio and suggests alternative securities and sectors that can be purchased that are showing more strength. By shifting money within a portfolio out of underperforming sectors of a benchmark, you can more easily create alpha over long time periods. This tactical ability makes Hedgeable much more nimble than the traditional large fund families and their Beta oriented strategies. These products will typically mimic the benchmark over long time horizons.
We have created our own Capital Market Signals. Using our proprietary technology system, our investing team can create customized buy/sell alerts, and receive live backtesting for over 30,000 securities. Our signals are high conviction and can be produced for any exchange traded security on the fly. Our signals help our investing team with buy/sell decisions on some of our investing strategies, along with alerting them on hedging opportunities and global market movements. As a firm that invests across multiple asset classes, it is important that we have a global perspective on all markets at all times.
Our eight proprietary, powerful, and sophisticated modeling tools help us build new strategies and constantly monitor how current strategies are performing. We can simulate and backtest decades of data against over fifty benchmarks, analyze event studies, diversification/correlation analysis, sensitivity analysis, & market exposure, and run 100,000 Monte Carlo simulations on-the-fly. Our modeling suite is powerful enough to run analysis on millions of combinations of portfolios. We are not limited by rigid technology or data constraints, in fact we have access to data on tens of thousands of securities.
We produce proprietary ratings and rankings for over 15,000 funds and strategies. Our method for rating funds is more sophisticated than the industry standard Morningstar method, because we look at drawdowns, VaR, alpha, along with other complex risk statistics, and heavily weight our scoring towards these stats. We can screen and rank these strategies by over 100 attributes including Sortino Ratio, 99% VaR, Drawdowns, Gain/Loss Ratio, Calmar Ratio, & Up/Down Capture. We use these screens to benchmark the overall health of our investment strategies and develop specific return/risk goals.