New portfolio analytics tool set to help investment professionals uncover risks and factor exposures in all types of portfolios, including those with alternative investments
AlphaCore Capital, a La Jolla-based wealth management firm, announced today the launch of factorE – a wealthtech tool built for intelligent investing. Powered by machine learning, factorE uncovers the risks and exposures of multi-asset portfolios through visual simulations on a single, easy-to-use interface. AlphaCore designed factorE to help advisors, portfolio managers and analysts better understand the factors impacting today’s diverse portfolios.
Portfolios for Tomorrow, Today
“Our team at AlphaCore searched for a solution to effectively manage complex portfolios that may hold a combination of mutual funds, ETFs, stocks, commodities, and alternative investments,” said Dick Pfister, CEO and Founder of AlphaCore. “When we couldn’t find one, we partnered with a team of developers who have worked with Qualcomm for decades to create a new proprietary wealth analytics tool.”
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The factorE tool allows advisors to build and analyze portfolios with easy to digest visuals that instantly illustrate the risk factors of a portfolio and expose risks that previously may have been hidden.
“We believe portfolio diversification beyond stocks and bonds is key to building and maintaining wealth. Financial professionals need a cost-effective tool that enables them to quickly and simply analyze a portfolio’s exposures to the multitude of risk factors impacting returns,” said Pfister. “Most of the tools on the market today either look at risk with a single-factor approach or cost tens of thousands of dollars.”
Understanding risk factors is especially important for the financial advisor seeking to incorporate alternative investments. “The market volatility we’ve seen so far this year combined with the potential for a continued rise in interest rates highlights the importance of diversification,” said Jonathan Belanger, Director of Research at AlphaCore and architect of factorE.” factorE helps to evaluate factor exposures and can empower users to create an effective allocation strategy for achieving long-term portfolio objectives.”
factorE allows users to look at a variety of risk factors including equity, duration, momentum, value, and credit, along with alternative risk factors like trend following, illiquidity, and hedge fund crowding. This new tool augments more traditional returns-based analysis with machine learning capabilities, enabling users to handle traditional strategies alongside alternative strategies such as long/short equity, relative value, event driven, managed futures and option writing.
With factorE, financial professionals can easily and efficiently demonstrate why changes are made to a portfolio and how the changes may help clients in achieving their financial goals.
- Show clients the risk factors in their portfolios through easy-to-understand graphic representations
- Evaluate the exposures of alternative strategies in one simple interface
- Design highly customized alternative allocations with confidence
- Perform scenario analysis by stress testing a portfolio in various economic conditions
- More effectively incorporate investments with short track records by simulating performance using their factor exposures
factorE has been beta-tested by a cross-section of financial advisors, broker-dealers, bank trusts, family offices and turnkey asset management platforms and is available now at a monthly and annual subscription.