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 4m 28d)

Returns (annualized)

Portfolio 6.16%
Benchmark 7.97%

Risk (annualized)

Portfolio 8.63%
Benchmark 11.10%

Sharpe (annualized)

Portfolio 0.45
Benchmark 0.53

Excess Return (annualized)

-1.81%

Tracking Error (annualized)

6.96%

Information Ratio

-0.26
Statistic Portfolio Benchmark
Downside Volatility 9.07% 11.99%
Sortino Ratio 0.43 0.49
Calmar Ratio 0.18 0.26
Ulcer Index 15.14 15.23
Max Drawdown 21.26% 22.16%
VaR (99% Confidence) $-2,007 $-2,582
VaR (99.9% Confidence) $-2,666 $-3,430
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

6.71

Skew

-0.44
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.3563 0.6195 -0.2632
Style Factor -0.0076 -0.0017 -0.0059
Size Factor 0.0263 0.0152 0.0111
U.S. Tilt (Non U.S.) -0.0751 -0.0135 -0.0616
Duration Factor 0.8862 0.3303 0.5559
Yield Curve Factor 0.0467 0.0204 0.0263
Inflation Factor 0.4838 0.0306 0.4532

Adjusted R2

Portfolio 0.87
Benchmark 0.99

Intercept

Portfolio -0.00
Benchmark 0.00

Factor Attribution