INDEX SOLUTIONS

In a world where 85% of all active managers cannot beat a low-cost passive index-based investment, ProForza has developed a unique, persistent process that can deliver consistently lowered risk and enhanced return on virtually any liquid basket of stocks.  

 

We can provide both extensive research on our the core investment principles and on all of our products.  All products share the core ARBi investment process that assesses risk on a basket of stocks and makes a systematic decision to manage that risk.   Risk assessment can range from daily to quarterly and is transparent to investors similar to that of an index-like investment. 

 

We offer various research papers below that can assist your understanding of the core concepts of the ARBi process and are integral to understanding our prior performance.  Past performance is no guarantee of future performance.  

Our view on Realizable Risk Control - benchmarked off S&P Risk Control Indices

Risk Control Indices Analysis

Intuitively, an investor should understand that predicting stock returns, either value or momentum, is relatively impossible with any level of consistency.   But, dig into two of the most major forms of returns available and you will find persistent, statistically significant risk reduction. 

Value and Momentum Investing - Do it Right - Reduce Risk

This research bottomline:  "Stop investing in “cheap” diluted closet indexing value and momentum exposures if you are trying to exploit value and momentum premiums. This is a sub-optimal approach. Instead, lean on modern portfolio theory mathematics, and invest in a portfolio that combines concentrated value and momentum exposures — you’ll give yourself a shot at earning a higher expected return and a much higher expected rebalance bonus. Win-win."

Rebalancing Bonus for Value and Momentum

Liquidity in an asset class has been shown to cost investors upwards of 3-5% annually in terms of sub-performance to a passive index based investment.   Without an understanding of why this occurs, investors are left with the result - 85% of all active management is unable to beat a simple, low cost market capitalization based index.   

Liquidity - Its Costing You Big

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ARBiALTh

ARBiALT’s combination of systematic quantum risk analysis for each stock, use of long and shorts, and cash, the resultant uncorrelated, absolute risk/return profile seeks to exceed that of any passive major market index and that of most active, hedge-fund like representative indexes.  Consists of a 20% allocation to each of ARBiD30h, ARBiMCPh, ARBiNGNh and 40% to ARBiFINh. 

ARBiD30h

Long short, large capitalization stock portfolio consisting of 30 stocks that may be found in the Dow Jones IndustrialsTM index.   Risk assessed daily on each stock via systematic process.  Alternative beta like offering that has generally superior risk/return characteristics to passive, semi-passive, mutual funds and "Smart" Beta products. 

ARBiMCPh

Long short, micro capitalization stock portfolio consisting of 30 stocks that may be found in the shares  Microcap ETF IWC.   Risk assessed daily on each stock via systematic process.  Alternative beta like offering that has generally superior risk/return characteristics to passive, semi-passive, mutual funds and "Smart" Beta products. 

ARBiNGNh

Long short, large capitalization stock portfolio consisting of 30 stocks that may be found in the ARK Innovation ETF ARKK.   Risk assessed daily on each stock via systematic process.  Alternative beta like offering that has generally superior risk/return characteristics to passive, semi-passive, mutual funds and "Smart" Beta products. 

ARBiFINh

Long short, portfolio consisting of 30 ETFs that span the fixed income investing universe.  Risk assessed daily on each stock via systematic process.  Alternative beta like offering that has generally superior risk/return characteristics to passive, semi-passive, mutual funds and "Smart" Beta products. 

ARBiQQQh

Long short, large capitalization stock portfolio consisting of a 60/40 blend of 19 stocks that may be found in the Nasdaq100 Index and 11 Fixed Income ETFS.   Risk assessed daily on each stock via systematic process.  Alternative beta like offering that has generally superior risk/return characteristics to passive, semi-passive, mutual funds and "Smart" Beta products. 

ARBiSTRh

Long short, early stage, generally microcap stock portfolio consisting of 30 stocks that may be found in S&P Kensho KMOON Index.   Risk assessed daily on each stock via systematic process.  Alternative beta like offering that has generally superior risk/return characteristics to passive, semi-passive, mutual funds and "Smart" Beta products. 

ARBiADR

Long only, stock portfolio consisting of 30 American Depository Receipts that may be found in the AdvisorShares Dorsey Wright ETF AADR.   Risk assessed daily on each stock via systematic process.  Ideal for core equity holdings versus standard passive, "Smart" Beta, and mutual funds. 

ARBiESG

Long only, stock portfolio consisting of over 30 stocks that may be found in the iShares ESG Microcap ETF ESML.   Risk assessed daily on each stock via systematic process.  Ideal for core equity holdings versus standard passive, "Smart" Beta, and mutual funds. 

ARBiETF

Long only, portfolio consisting of 30 ETFs that form a core ETF-based model and spans all major asset classes.   Risk assessed daily on each stock via systematic process.  Ideal for core equity holdings versus standard passive, "Smart" Beta, and mutual funds. 

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