Methodologies
Introduction
The portfolio management industry is undergoing a revolution analogous to the shift that occurred after Markowitz introduced Modern Portfolio Theory(MPT) over half a century ago. Managers who embrace cutting-edge Financial engineering and portfolio construction methodologies will increasingly dominate traditional managers who fail to adapt and enable in an environment of lower fee structures, heightened transparency and performance related incentives.
MPT is widely accepted as the underlying methodology by Institutional managers when constructing portfolios, which maximize expected returns at different levels of risk.
Optimization
Explore risk vs. return trade-offs based on historical or forecasted returns. Optimize portfolios based on mean-variance, conditional value-at-risk (CVaR), risk-return ratios, or drawdowns.
Timing Models
Rule-Based methodologies with pre-defined parameters. Azzilon constructs these to be in line with the goals and constraints of its clients.
