Portfolio Optimization

What if you expected your annual portfolio return to be 7%, in the same period global benchmarks were up 5%, but your actual return was -2%?

Solutions to the performance problem abound. Our approach, based on portfolio optimization theory, is simple:

  1. Correlation analysis to eliminate redundant assets in your portfolio.
  2. Rebalance the portfolio. Exclude stocks/mutual funds/ETFs with inadequate return or risk characteristics. Replace the laggards with assets that demonstrated better historical risk – adjusted returns.
  3. Optimize and stress test the mix of suggested assets to ensure the allocations are efficient and in line with your risk preferences.

Portfolio optimization and rebalancing thereafter can be a difficult task, most suitable for your financial advisor, aware of all your goals and constraints. But, a first look at the correct mix as suggested by Modern Portfolio Theory (MPT), and the contemporary incarnations, at our disposal is a great start.

Whether you are a do-it-yourself investor or financial advisor we look forward to working with you. Send us your portfolio analysis requests to: info@turtlestreetcapital.com

At a minimum please provide the following information:

  • A complete list of the assets in your current portfolio (tickers, fund codes)
  • The current or targeted percentage allocation to each asset

Download example of the optimized portfolio from here optimization-results-1.