U-Optimize advantages
long-short portfolio
Sustainable Alpha
The strategy generates lower capture ratio in declining markets and generate higher risk-adjusted returns in bull markets.
Quality Tilt
The portfolio consists of high quality companies that proven to offer accessible risk premium reward for a prolonged period.
Diversification
The process generates on average more than 100 companies that can be used in portfolio formation without bias to particular sectors.
Lower Drawdowns
On average, the strategy captures less than 50% of full market drawdown during the bear market phases.
top Fundamentals
The portfolio outperforms the S&P 500 on balance sheet strength and return on invested capital.
Lower Beta
Due to the introduction of tactical short component, the strategy operates with a lower beta.
Methodology
transparent 4-stage process
Profitability and Quality
We select only the top profitable and quality companies that has proven to generate higher risk adjusted returns.
Macro Conditions Assessment
Our proprietary macroeconomic model identifies the turning points in the economy and contributes to weights adjustment in allocation to both long and short components.
Long and Short Basket Formation
We utilize both long and short baskets to minimize drawdown during prolonged bear markets and deflationary market conditions.
Factors and Risk Optimization
We incorporate factors and mean-variance optimization tools to minimize risks of underperformance during period of high uncertainty and tail risks shocks.
portfolio performance
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