What we do is very simple and clear box in nature:
Take any basket of stocks, run our mathematical training algorithm on those stock's historical prices, set the maximum weight on each stock to equal weight (eg. 30 stocks equals 3.33% maximum risk weight on each stock), rebalancing daily as the model analyzes the risk on each stock.
If long only is desired, then the risk weight shifts between 0 (cash) and 1(risk weight on). If long and short is desired, then risk weight can be 0 (cash), 1 (risk weight on) and -1 (inverse risk weight on).
Our goal has always been to reduce and eliminate biases in the decision process. This is the chief reason why most active management will not beat a market capitalization weighted index over time.
The ARBi (Active Risk-Based investing) process basically takes the best element of "passive" (setting risk weights based on price) and moves it forward, which is our version of Passive 2.0.
What you can get is pure sustainable alpha on a diversified basket of stocks. You can pick from our stable of products or you pick an index or ETF (exchange traded fund) and run our process on it.
Either way, you get what you want: pure alpha, diversification of risk, lowered tracking error, high Sharpe ratio, high Information Ratios, and reasonable cost.
You want to understand more, see some real numbers, feel free to Contact Us