The Leading Edge For Active Managers – “Portfolio Trend Allocation analysis and optimization

Mission-critical intelligence to profit from performance dispersion and maximize returns.

How can you outperform an index if your portfolio has an exposure to stocks in a bear trend that is larger than the one of the index?  If your portfolio has a 30% weight on falling securities while the benchmark to beat has only a 15% share in stocks in a negative trend, can you expect to overperform?

Managing the risk to underperform

Trendrating enables the Analysis of portfolio allocation across positive and negative trends compared to the benchmark trends distribution as a predictive metric of relative performance.

Introducing the “Trend Capture Rating“ (TCR) to analyze a portfolio allocation across positive and negative trends (and compare it with the index aggregated trends distribution). An innovative metric with predictive value of expected relative performance differential. Intelligent data is the new gold for active managers.

  • Measure the allocation across stocks in actual bull and bear trends for your portfolios vs. the benchmark.
  • Spot any relevant difference between the two of “trend exposure” using our portfolio rating methodology.
  • Increase the portfolio rating to improve the probability to outperform.

RATING PRICE TRENDS IS NOW A MUST HAVE FOR ACTIVE MANAGERS

Why? Stock prices may or may not reflect the underlying fundamentals of companies. Stock prices may or may not behave as experts and analysts forecast. Stock prices may or may not be correlated to any possible rationale outlook. That’s the tough reality of stock markets and that is why still too many active managers underperform the relevant benchmark.

Therefore an unbiased, objective, disciplined “reality check” about the “actual trends“ is critical to deliver superior performance on a consistent basis.

Disregarding real trends and dismissing the importance of respecting price action is a recipe to underperformance for many managers.

Markets are getting more complex and trends are governed by the money flow driven a variety of factors, that fundamental data alone cannot capture.

Adding a layer of intelligent “trend valuation” is a rock-solid choice, as it validates ideas and provides an extra level of quality and risk control that has a direct impact on investment performance.

It is so obvious. If you want to capture the best opportunities and  profit from trends, start evaluating the actual price developments.

Trendrating invented a way to rate price trends with a time horizon of 6-to-18 months, that now is a must have to thousands of portfolio managers worldwide.

Trendrating makes extremely simple to assess the direction and quality of trends with a fully actionable proprietary rating system.

See how you can gain a strategic edge with measurable value using our unique range of solutions.

THE OPPORTUNITY OF PERFORMANCE DISPERSION

The Trendrating system enables active fund managers to improve the performance and control risks. Trends are there all the time, equity markets display an incredible dispersion of performance as showed in the below tables. This is a fantastic opportunity for investors, to capture a large part of the top performers and avoid most of the bottom performers using Trendrating. This allows active managers to outperform passive benchmarks that are just a mathematical combination of both winners and losers.

The dispersion of performance for the 12 months ending on January 1st 2021:

STOXX Europe 600 Performance* S&P 500 Performance*
Index -3.90% Index +16%
Top 25% +61% Top 25% +110%
Bottom 25% -28% Bottom 25% -17%

Trendrating’s unique & innovative trend capture methodology provides investment managers a framework for outperforming their benchmarks and to prove that active management can be smarter than benchmark tracking passive strategies.

How many of the top 25% performers did you capture? We can help.  

DISCRETIONARY

SYSTEMATIC

Our range of solutions

Alternative data, advanced analytics and smart technology delivering alpha. Measurable, Actionable, Repeatable.

ADVANCED ANALYTICS DATA FEED

PERFORMANCE MANAGEMENT PLATFORM

STRATEGY MANAGEMENT SOLUTION

PORTFOLIO SENTINEL (PLUS)

REPORTS

INDICES

Our Clients

We serve professional investors that strive for constant improvement, aim at delivering superior value, who understand the importance of not missing opportunities offered by new data and advanced technology and are in tune with an evolving world.

ASSET MANAGERS

WEALTH MANAGERS

FUND MANAGERS

RISK MANAGERS

ADVISORS

VALUE INVESTORS

SYSTEMATIC INVESTORS

A few selected names:

HOW TO USE IT

ABOUT US

Trendrating was created to provide better tools to maximize investment performance and improve risk control. We bring additional intelligence and measurable value to the existing decision processes. Superior performance and financial success come from discipline and a systematic reality check of assumptions. Bias, emotions, market noise and overconfidence may severely limit a manger’s ability to perform.

OUR PARTNERS

Trendrating key strategic partners include Bloomberg, Euronext, Factset, Harvest, CFA, Data In Harmony and Chalice.

RESEARCH & INSIGHTS

AWARDS

Forecasting trends is close to impossible.
Following trends is possible and lucrative.

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