Gsphere has the flexibility to compare any portfolio to any portfolio. You can compare the same portfolio over different time periods, various versions of the same holdings optimized with different settings or contrast a prospect’s holdings to a recommended model. Whenever looking at a client facing comparison, it is critical to make those comparisons apples to apples. Apples to apples can be either historical or forward looking, however we suggest that historical is a more definitive approach. Our SaaS technologies do this automatically, but in the desktop application we need to follow these 3 simple rules.
1. Use the same time period
2. Use the same correlation calculation option
3. No editing or shrinking the risk and return data
These 3 simple rules will provide for fair apples to apples comparisons. However, because these tests do not account for investment selection process or re balancing actions we recommend limiting the backtests to shorter periods. I like to use 3 year tests because a portfolio is tested in both bull and grievous bear markets.
James’ professional orientation points at the zenith (and sometimes nadir) where technology and investments intersect. He is a Fintech entrepreneur and has served twenty years of a lifetime sentence.
James is a patented inventor, quant pioneer and investment manager. He is the founder of Gravity Investments, a unique investment and technology services firm centered on James’ inventions for diversification measurement, optimization, visualization, and analysis. In the development of the platform, James has pioneered A.I applications, diversification attribution, down-side diversification, portfolio re-optimization, full-lifecycle strategy optimization, programmable investment policy statements and core-satellite optimization techniques.
In working with advisors, funds and money managers as both a strategic sub-advisor and software consultant, James has consulted and trained hundreds of professional investors on portfolio design and optimization. James has a unique ability to look at any investment process and find practical, intelligent and often quantifiable opportunities to improve the investment product.
Inspired by the work of Nobel Laureate Harry Markowitz and the efficient frontier, James has championed and pioneered the science of diversification. James’ technology has advised
or assisted in over 30 Billion dollars of investor capital. His vision of a more perfect investment management system is at the heart of Gsphere ( www.gsphere.net )
His passion for performance, curiosity for the unknown, and drive to excel empower his service to investors.
James is Founder and CEO of Portfolio ThinkTank (the B2C company) www.portfoliothinktank.com, Founder & Chief of Financial Engineering at Gravity Investments www.gravityinvestments.com (the B2B company) and Chief Investment Officer at Gravity Capital Partners, a wholly owned SEC Registered Investment Advisor.