Four Quadrant Portfolio

Portfolio Specification

Policy

Rebalancing Interval Quarterly
Weights Algorithm Equal Risk Contribution
Weights Algorithm Look-back 3 Years
Weights Updating Interval Quarterly

Benchmark

Simple 60/40

This portfolio is listed on the Community Portfolios page.

Portfolio Description

The portfolio is comprised of 4 thematic composites designed to capture different market environments.

  • “Inflationary Boom”

  • “Deflationary Boom”

  • “Inflationary Bust”

  • “Deflationary Bust”

Policy Report

Backtest Report

From to (8y 7m 23d)

Returns (annualized)

Portfolio 6.91%
Benchmark 7.88%

Risk (annualized)

Portfolio 8.67%
Benchmark 11.03%

Sharpe (annualized)

Portfolio 0.53
Benchmark 0.52

Excess Return (annualized)

-0.98%

Tracking Error (annualized)

7.01%

Information Ratio

-0.14
Statistic Portfolio Benchmark
Downside Volatility 9.17% 11.90%
Sortino Ratio 0.50 0.48
Calmar Ratio 0.22 0.26
Ulcer Index 15.16 15.24
Max Drawdown 21.26% 22.16%
VaR (99% Confidence) $-2,017 $-2,564
VaR (99.9% Confidence) $-2,679 $-3,406
Beta to Benchmark 0.61 N/A

Value at Risk (VaR) is calculated off a $10,000 portfolio value.

Growth Charts

Historical Weights

Return Distribution

Excess Kurtosis

6.55

Skew

-0.47
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.3569 0.6192 -0.2623
Style Factor -0.0085 -0.0017 -0.0069
Size Factor 0.0300 0.0149 0.0151
U.S. Tilt (Non U.S.) -0.0820 -0.0127 -0.0693
Duration Factor 0.8827 0.3302 0.5524
Yield Curve Factor 0.0461 0.0203 0.0258
Inflation Factor 0.4888 0.0311 0.4577

Adjusted R2

Portfolio 0.86
Benchmark 0.99

Intercept

Portfolio -0.00
Benchmark 0.00

Factor Attribution