Technology to identify risk premiums


What you are looking for

  • Harvest risk premiums.
  • Ensure a positive and diversified performance.

What we do

  • Combine computational power and algorithms.
  • Analyze thousands of securities and trading sessions.
  • Measure risk premium criteria.

What we offer

  • Optimize the qualitative criteria for allocating risk premiums.
  • Understand the interactions between allocation criteria.
  • Develop certifiable, transparent and sustainable management strategies.
  • Integrate environmental, social and governance (ESG) investment criteria.

The Fundo capital gain

Minimize risk exposure and outperform standard indices: thanks to cutting-edge technology combining data analysis and algorithms, Fundo is able to analyze thousands of securities and propose controlled and efficient portfolio management strategies built with the client.

Factor Investing

Can we durably minimize our risk exposure and achieve an average performance above the standard indices? Factor investing attempts to solve this equation by decoupling the weighting of securities from their market capitalization - a classic approach that exacerbates financial bubbles by strengthening them - and substituting variable qualitative criteria (low volatility, momentum, size, debt ratio, dividend policy, etc.). However, the success of these strategies exploiting empirically observed anomalies in the market efficiency hypothesis is unstable.

Technological machinery

In this context, Fundo engineers have developed sophisticated technological machinery, which combines a large amount of rigorously controlled data and algorithms (codified strategies), on the basis of which intensive simulations integrating market realities have been conducted. This analysis covered 20 years, or more than 5000 trading sessions, including stocks from three reference universes: Switzerland (200 stocks), Europe (600 stocks) and the world (1600 stocks). As the composition of the universes changes over time, the number of titles considered increases accordingly.

Measure the risk premium

Thanks to this high data processing capacity, Index seeks to determine measurable risk premium criteria. It focuses on:

  • provide quantified evidence on the proven existence of premiums;
  • differentiate these premiums according to their effectiveness in different markets;
  • measure their persistence over time;
  • study their mutual relations (co-dependencies) or even their possible redundancies;
  • assess their sensitivity to the volumes invested in terms of efficiency;
  • measure their interest according to differentiated market situations and, if necessary, mix them to magnify their qualities.

Strategies, products, advice

Based on these results, Fundo strives to develop reproducible equity portfolio management strategies, based on transparent criteria, to generate a surplus premium or to reduce risks in the management of real portfolios.

Thanks to this mastery of technological innovation, Fundo offers clients various types of services that include consulting, the management of specific mandates, certificates or mutual funds.