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The evolution in technology using AI and algorithmic trading is reshaping the finance and investment landscape. The use of traditional Modern Portfolio Theory methods continues to play a role in reducing risk in pursuit of higher returns. However, our research has found that with the proper use of these technologies, we are more favorably positioned to protect your clients from major market downturns and exponentially improve performance.
Technical analysis continues to be a scientifically sound approach in executing investment management strategies. Although no one can precisely predict the future, the primary tenet is that history can and does repeat itself. As such, we can rely on past patterns in price movements to help predict future ones.
The use of our SHEP predictive analytics and proprietary algorithm delivers numerous advantages over human-driven strategies by removing manual errors, eliminating emotional bias in trading decisions, improving accuracy and gaining increased efficiency.
We are well-versed on the influence and implications that behavioral biases can have on how investors think and feel about investing and their assets. Many advisors are skilled in helping clients combat emotional tendencies, often encouraging them to “weather the storms” of volatility. This can prove to be detrimental.
Although well-intended, this can result in investors suffering greater losses during market downturns. This can significantly impact their ability to accomplish their long-term financial goals.
Instead, SHEP automatically executes its defensive strategy, protecting wealth and making it possible to mitigate negative impacts that could likewise be caused by human behavioral biases.
We believe performance is personal. Our SHEP portfolios can address each of your client’s unique needs and circumstances. Each portfolio is constructed with each security being individually optimized for best-in-class performance. SHEP is anchored in reliable technology and automation, applying both highly advanced technical algorithms and principles of Nobel Prize winning economic research.
Purely automated, SHEP is “always on” with live data streams and timely decisioning designed to protect your clients and produce superior returns. This is achieved by keeping your clients on the “right side of the market.” To best protect and grow your clients’ wealth, SHEP actively manages each security in the portfolio independently across ever-changing market cycles.
The beginning of the Modern Portfolio Theory dates back to 1952 with American economist Harry Markowitz. His position was that any given investment’s risk and return characteristics should not be viewed alone; rather, it should be analyzed by how it affects the overall portfolio’s risk and return. He discovered that by constructing portfolios using multiple asset classes that one could achieve greater returns without exposing themselves to higher levels of risk. In 1990, Dr. Harry Markowitz shared the Nobel Prize in Economics for this work.
The Modern Portfolio Theory remains the primary method in which investment portfolios are constructed today. It is foundational to how we create efficient portfolios to meet your clients’ return expectations at lower levels of risks. Yet we take it one step further, actively managing each security in client portfolios with SHEP, applying effective technical analysis to further reduce risks and enhance performance for your clients.
Goals-Based Investing (GBI) is much like it sounds. It is the development of an investment architecture specifically designed to accomplish financial goals funded within specific time frames. These constructs are generally known to rely on a combination of investments that, more specifically, minimize the probability of failing to achieve at least a minimum financial target level within a given time period.
We contend that the SHEP sell discipline, designed to anticipate and respond to market downturns by removing clients from harm, is better positioned to accomplish their financial goals in shorter timeframes than conventional methods. Our defensive risk management strategy helps to minimize downside risks. As a result, we are able to optimize performance with significantly lower risks of shortfalls in the event of adverse market conditions.