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 8m 16d)

Returns (annualized)

Portfolio 6.47%
Benchmark 7.37%

Risk (annualized)

Portfolio 8.69%
Benchmark 11.05%

Sharpe (annualized)

Portfolio 0.48
Benchmark 0.47

Excess Return (annualized)

-0.90%

Tracking Error (annualized)

7.03%

Information Ratio

-0.13
Statistic Portfolio Benchmark
Downside Volatility 9.21% 11.93%
Sortino Ratio 0.45 0.44
Calmar Ratio 0.20 0.24
Ulcer Index 15.16 15.24
Max Drawdown 21.26% 22.16%
VaR (99% Confidence) $-2,021 $-2,570
VaR (99.9% Confidence) $-2,685 $-3,413
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

6.46

Skew

-0.47
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.3548 0.6191 -0.2643
Style Factor -0.0070 -0.0015 -0.0054
Size Factor 0.0286 0.0149 0.0137
U.S. Tilt (Non U.S.) -0.0793 -0.0124 -0.0669
Duration Factor 0.8813 0.3301 0.5512
Yield Curve Factor 0.0445 0.0204 0.0242
Inflation Factor 0.4953 0.0312 0.4640

Adjusted R2

Portfolio 0.85
Benchmark 0.99

Intercept

Portfolio -0.00
Benchmark 0.00

Factor Attribution