Factor investing software is designed to assist institutional investors to capture excess returns of systematic factors in a transparent and fully automatic way.
Single-factor strategies capture the returns of factors that have historically earned a premium over a broad market
The analysis of the Capital Expenditures (CapEx) factor shows that the value of firms with low capital expenditures is growing faster than the market in the long run. The high predictive stability of the CapEx factor is evident from the values of the market neutral long-short portfolio.
See a detailed factor explanation. Fine-tuning of strategies (universe, number of long/short positions, leverage, time period, and more) is available in our factor investing app.
Factor investing combines features of both passive and active investing
Instead of weighing holdings based on market capitalization, as passive indices do, factor strategies offer a way to invest in assets with high exposure to specific characteristics – “factors”. Favorable factors have demonstrated the ability to produce excess returns or lower volatility over time, characteristics that active fund managers constantly seek in their research.
How it works
Strategy is a system for tracking factors performance, that is cost-effective, easy to implement, and fully automated. It brings transparency to factor allocations and enables portfolio managers to eliminate a problem with the portfolio drifting away from target factor exposure amid shifting market conditions
Pick a factor
With Analytical Platform it is easy to understand the behavior of factors looking back in time.
Pick a factor created with robust academic findings or find your own factor with favorable characteristics.
Test and tune a strategy
Based on the chosen factor, you can simply test and set up a strategy directly fitting your investment needs.
How many stocks? How often should you adjust your portfolio? Buy or sell as well? Use leverage? Set up your strategy.
Track performance
Get automatically refreshed portfolio holdings just as a means of implementation of the factor strategy.
Following the parameters of your strategy, track the performance and get notified about portfolio adjustments.
Register today & enjoy one month
FREE trial of our application
Applications of factor strategies
As an investor, you have the option to setup exposure to non-market risk factors, rather than relying on returns associated with the broad market risk. Single-factor strategies provide building blocks for investors who want to change their risk profiles or diversify their portfolio by creating exposure to their chosen factor.
Building blocks
Prepare a well-diversified portfolio of single-factor strategies, each with specific factor exposure and automatic re-adjustments.
Factors benchmarking
Track factors performance, check against actively managed funds, and uncover correlations in excess returns with factor-driven returns.
Factor-based universe
A strategy tracking a specific factor, e.g. momentum, may serve as a custom universe for picking the best momentum stocks into portfolios under your management.
Investment product
An automatically rebalanced factor portfolio can be set up as a cost-effective licensed basis for structured investment products such as indices, ETFs, etc.
Factors research
Explore attributes that impact investment performance. Understand the drivers behind market returns and optimize portfolio strategies for enhanced risk-adjusted results.
How do portfolio managers use our factor investing software
Stefan,
Portfolio Manager
/ TRACKING HIGH FREE CASH FLOW INDEX
I was looking for an index composed of high free cash flow US stocks. However, I discovered the Analytical Platform, which moreover allows me to apply my own rules. So I created my own “index”. I have been using their application ever since because I am able to set up leverage, a different number of stocks, and there is also a possibility of shorting my investment.
Michael,
Financial Advisor
/ CREATING MORE BALANCED PORTFOLIO
I have clients approaching me with portfolios that are pretty unbalanced. With the help of Factor investing software, I supplement client portfolios appropriately so that they work in most market conditions.
Maria, Management of own funds
/ UNDERSTANDING THE UTILITY OF EPS RATIO
I used to buy stocks with high Earnings per share value. This software made me realize that in the Covid-19/ cheap money period, it didn’t work.
Plans
FEATURE
Factors coverage (1000+)
Factor analysis
Investment strategy
Strategy backtesting
Past portfolio holdings
Real-time portfolio tracking
Current portfolio constituents
Portfolio adjustment alerts
FREE PLAN
€0/month
S&P 100
PAID PLAN
€39/month
S&P 100 and S&P 500
TAILORED PLAN
€ custom
Combinations of multiple markets, e.g. STOXX600+SP500.
Other markets (Indian market, …).
Custom universe (pick a few assets from anywhere, e.g. 2 German assets, 4 US from DOW Jones, 5 from Russell 3000, 3 from Japan).
New factors coverage in our database.
FEATURE
FREE PLAN
€0/month
Factors coverage (1000+)
S&P 100
Factor analysis
Investment strategy
Strategy backtesting
Past portfolio holdings
Real-time portfolio tracking
Current portfolio constituents
Portfolio adjustment alerts
FEATURE
PAID PLAN
€39/month
Factors coverage (1000+)
S&P 500
Factor analysis
Investment strategy
Strategy backtesting
Past portfolio holdings
Real-time portfolio tracking
Current portfolio constituents
Portfolio adjustment alerts
FEATURE
TAILORED
PLAN
€ custom
Factors coverage (1000+)
Factor analysis
Investment strategy
Strategy backtesting
Past portfolio holdings
Real-time portfolio tracking
Current portfolio constituents
Portfolio adjustment alerts
Combinations of multiple markets, e.g. STOXX600 + SP500.
Other markets (Indian market, …).
Custom universe (pick a few assets from anywhere, e.g. 2 German assets, 4 US from DOW Jones, 5 from Russell 3000, 3 from Japan).
New factors coverage in our database.
