© 2019 by ProForza Advisors LLC

INDEX SOLUTIONS

In a world where 85% of all active managers do not 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 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 ranges 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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ARBiALT

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.

ARBi030

Long only, 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. 

ARBiLCP

Long only, large capitalization stock portfolio consisting of 100 stocks that may be found in the SP100TM index.   Risk assessed monthly on each stock via systematic process.  Ideal for core equity holdings versus standard passive, "Smart" Beta, and mutual funds.  

ARBiIND

Long only, mega capitalization stock portfolio consisting of 30 stocks that may be found in the Dow30 industrials index.   Risk assessed monthly on each stock via systematic process.  Ideal for core equity holdings versus standard passive, "Smart" Beta, and mutual funds.  

ARBiSRF

Long only, tactical allocation amongst 9 Spider sector exchange traded funds.  Risk assessed monthly on each stock via systematic process.  Ideal for core equity holdings versus standard passive, "Smart" Beta, and mutual funds.  

ARBiUTL

Long only, stock portfolio consisting of over 30 utility stocks that may be found in Utility Spider exchange traded fund (XLU).   Risk assessed monthly on each stock via systematic process.  Ideal for core equity holdings versus standard passive, "Smart" Beta, and mutual funds.  

ARBimTRN

Long only, stock portfolio consisting of over 30 transportation stocks that may be found in the DOW Transports index.   Risk assessed monthly on each stock via systematic process.  Ideal for core equity holdings versus standard passive, "Smart" Beta, and mutual funds. 

ARBiHLT

Long only, stock portfolio consisting of over 30 healthcare stocks that may be found in the Spider Select exchange-traded fund XLV.   Risk assessed monthly on each stock via systematic process.  Ideal for core equity holdings versus standard passive, "Smart" Beta, and mutual funds. 

ARBiTEC

Long only, stock portfolio consisting of over 30 technology stocks that may be found in the Spider Select exchange traded fund XLK.   Risk assessed monthly on each stock via systematic process.  Ideal for core equity holdings versus standard passive, "Smart" Beta, and mutual funds. 

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