PHILOSOPHY and CAPABILITIES
Arialytics develops quantitative portfolio management technology and investment strategies. We employ a research process that is grounded in quantitative investment science, driven by technology.
SYSTEMATIC PORTFOLIO CONSTRUCTION
Arialytics is a quantitative investment research firm, founded on the idea that a rigorously scientific quantitative approach to investing provides the best means of reducing uncertainty and achieving superior long-term outcomes. Guided by intelligent, structured scientific processes, we apply large amounts of computation and data to discover unique portfolio solutions.
We develop novel investment strategies. This includes the development of systematic portfolio and trading strategies, allocation strategies, and unique data feeds designed to target particular exposures, assets, risks, trading constraints, transaction costs and tax objectives. We start by defining desired outcomes and work forward, researching and discovering optimal solutions.
RESEARCH and DISCOVERY
Our research approach emphasizes discovery and encourages the rapid formulation and testing of many investment ideas. It allows our researchers to quickly find robust, unbiased answers to questions, and to develop further ideas. Through rapid collaboration, ideation, and testing, we are able to make new connections and discoveries of value that would otherwise simply not be possible.
We understand it is essential to maximize the unbiasedness of our research through carefully constructed analytic procedures. In doing so, we maximize transparency and minimize return distribution uncertainty of each investment strategy.
Multi-factor investing – identifying and basing investment decisions on empirically proven risk factors and the harvesting of risk premiums – offers a powerful way to achieve alternative return objectives and manage risks deliberately, transparently and understandably. When combined in a systematic fashion, multi-factor investing seeks to deliver superior risk control and risk adjusted returns.
SYSTEMATIC RISK MANAGEMENT
We understand that asset management is actually systematic risk management and that returns are a result of the risk exposures selected by the strategy. In our strategy development process, risk management is an essential building block, not an add-on or a constraint to be considered or optimized ex-post. We strive to develop strategies with inherent risk management characteristics.