[Professional investment management has always been challenged to validate and rank investment ideas, develop rule-based risk management, and design, test, and execute advanced investment strategies in their portfolio management and optimization efforts. This endeavor has been aided over time with the discipline of mathematics and technology. To address this ongoing evolution and the performance challenges...Read More
Delivering superior performance on a consistent basis is the main challenge for many portfolio managers. The performance of many mutual funds and ETFs. The industry of actively managed products seems failing to deliver the value that it is supposed to produce. Over the last 20 years: 93% of funds underperformed the benchmark S&P Composite 1500....Read More
The shifting dynamics of the market are exposing the inadequacy of some conventional data, tools, and methodologies in effectively navigating the increasing risks and achieving optimal performance. This juncture calls for a pragmatic reevaluation of traditional strategies. To gain insight into this, we asked the opinion of Rocco Pellegrinelli, the visionary founder & CEO of...Read More
Too often investors base their investment decisions on assumptions that the parameters and rules they use to select stocks are effective to deliver alpha. They make sense, but do they really make money? Did they have the opportunity to test them across a meaningful historical window and validate the hypothesis with robust evidence? Without hard...Read More
The new market regime is exposing the inadequacy of some conventional data, tools and methodologies in managing the increasing risks and delivering performance. It is time for a pragmatic reassessment of traditional strategies. We asked the opinion of Rocco Pellegrinelli, founder & CEO of Trendrating, an innovative wealth tech firm providing advanced analytics and sophisticated...Read More
Trendrating U.S. Performance Dispersion Navigator – January 2024 Performance dispersion is the opportunity. Here is the performance of the S&P 500 index over the last three years: up 27% in 2021, down -19% in 2022 and up 24% in 2023. This “roller coaster” behavior of the market is here to stay, according to experts. The...Read More
The Opportunities For Smart Investors in The New Regime As the new market cycle is imposing a reassessment of traditional strategies and raises the bar to deliver performance for the professional portfolio management industry, we asked the opinion of Rocco Pellegrinelli, founder & CEO of Trendrating, an innovative wealth tech firm providing advanced analytics and...Read More
In the new market cycle, stock indices can only offer high volatility and low annual returns for the next few years, if history can be of guidance – the sideways market cycles of 1969-1980 and 2000-2009. However, the performance dispersion across stocks is broad and provides the opportunity to outperform. How broad is the performance...Read More
[Is the bear back or are we entering a protracted, low-return market environment? Either way, active portfolio management can still potentially deliver superior returns even in difficult market cycles by “acknowledging and respecting price trends and profiting from the broad performance dispersion across stocks”. This statement and a further call on our entering a new...Read More
Based on our research, in 2022 we entered a new market cycle that is expected to generate low returns for the next few years. The previous similar market cycles (1968-1982 and 2000-2009) recorded annualized returns on major US indices that were below 1% with a long sequence of volatile up and down waves. But while...Read More
