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

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.

  • US Stocks Performance Dispersion 6 months - Top 25% performers +37%, bottom 25% performers -35%
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  • Developed Europe Stocks Performance Dispersion 6 months - Top 25% performers +18%, bottom 25% performers -7%
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  • Asia Pacific Stocks Performance Dispersion 6 months - Top 25% performers +52%, bottom 25% performers -23%
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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.

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Simple steps to boost your performance – Enhance your strategy with Trendrating validation filter

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*
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

Use Cases

  • Portfolios risk management
    Enhance your ability to spot emerging risks across holdings in time to protect your performance. Track the changes on rating to be alerted in time on negative trend reversals that can lead to losses.
  • Validate investment ideas
    Add a sophisticated trend validation rating as a pragmatic sanity check. The confirmation of a clear positive trend provides a critical quality filter for investment selection.
  • Enhanced ranking metrics
    Use our advanced analytics to enrich your ranking metrics on your selected lists of stocks. Add a trend quality analysis and rating to your ranking methodology to profit from performance dispersion.
  • Beat the benchmark
    Analyze and compare the “trend capture rating” of your portfolios vs. the benchmark. Improve the odds to beat the index with a high TCR, that measures the trend allocation . The wrong trend allocation is the main factor behind the underperformance vs. the benchmark.
  • Create your winning investment strategy
    Select from the rich data set of fundamentals and advanced trend analytics the rules that you like. Test your strategy for up to 10 years. Optimize the parameters and maximize the results. Save and execute your strategy.
  • Sectors rating and allocation
    Track the changes in rating across sectors and industries on an aggregated basis and execute a more effective allocation and rotation. Stay on top of money flows and sentiment developments across sectors.
  • Identify new opportunities
    Spot emerging investment opportunities in any market of your interest. Use positive alerts on upgrades to identify new, positive trends across your investment universe.
  • Alerts on securities and portfolios
    Be alerted about negative trend reversals across your holdings and about overall “trends allocation” risks in your portfolios (low TCR).

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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