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.
At Trendrating we believe that any investment strategy, however designed, can be improved by definition. We like to challenge the status quo and bring a fresh view by offering sophisticated, innovative solutions to help our clients to maximize investment returns.
How? The opportunity is called performance dispersion. It is a phenomenon working in any investment universe and it is there to be exploited by smart investors.
The performance dispersion is a gold mine for active investors using any investment approach. It is possible to profit from performance dispersion if one has the vision and the right analytics and tools to assess, rate and validate the individual price trends, adding critical intelligence to the existing investment process.
The result is improved performance by maximizing the exposure to some of the top performers while avoiding a good part of the underperformers in the chosen investment universe, recognizing the fact that price trends are governed by a variety of factors beyond fundamentals. The wrong trend allocation is the main cause of underperformance.
Trendrating is a leading provider of data, technology, indices and model portfolios designed to measure and capture performance dispersion. For instance, see how our indices can boost the performance of growth and value strategies.
EU Value Strategy vs. Benchmark
EU Value Strategy + Trendrating Validation Filter vs. Benchmark
The Trendrating system enables active fund managers to improve their 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*|
|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.