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 9m 9d)

Returns (annualized)

Portfolio 7.03%
Benchmark 8.22%

Risk (annualized)

Portfolio 8.68%
Benchmark 11.06%

Sharpe (annualized)

Portfolio 0.54
Benchmark 0.55

Excess Return (annualized)

-1.19%

Tracking Error (annualized)

7.03%

Information Ratio

-0.17
Statistic Portfolio Benchmark
Downside Volatility 9.19% 11.91%
Sortino Ratio 0.51 0.51
Calmar Ratio 0.22 0.27
Ulcer Index 15.16 15.24
Max Drawdown 21.26% 22.16%
VaR (99% Confidence) $-2,019 $-2,573
VaR (99.9% Confidence) $-2,682 $-3,417
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

6.45

Skew

-0.47
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.3538 0.6190 -0.2652
Style Factor -0.0067 -0.0014 -0.0053
Size Factor 0.0286 0.0148 0.0138
U.S. Tilt (Non U.S.) -0.0774 -0.0122 -0.0653
Duration Factor 0.8811 0.3302 0.5509
Yield Curve Factor 0.0444 0.0204 0.0241
Inflation Factor 0.4971 0.0316 0.4656

Adjusted R2

Portfolio 0.85
Benchmark 0.99

Intercept

Portfolio -0.00
Benchmark 0.00

Factor Attribution