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 10m 3d)

Returns (annualized)

Portfolio 7.13%
Benchmark 8.42%

Risk (annualized)

Portfolio 8.67%
Benchmark 11.05%

Sharpe (annualized)

Portfolio 0.55
Benchmark 0.56

Excess Return (annualized)

-1.30%

Tracking Error (annualized)

7.01%

Information Ratio

-0.19
Statistic Portfolio Benchmark
Downside Volatility 9.16% 11.88%
Sortino Ratio 0.52 0.52
Calmar Ratio 0.22 0.28
Ulcer Index 15.17 15.25
Max Drawdown 21.26% 22.16%
VaR (99% Confidence) $-2,015 $-2,571
VaR (99.9% Confidence) $-2,677 $-3,415
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

6.44

Skew

-0.47
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.3529 0.6189 -0.2660
Style Factor -0.0060 -0.0015 -0.0045
Size Factor 0.0281 0.0147 0.0134
U.S. Tilt (Non U.S.) -0.0750 -0.0122 -0.0628
Duration Factor 0.8804 0.3301 0.5503
Yield Curve Factor 0.0446 0.0204 0.0242
Inflation Factor 0.4994 0.0316 0.4678

Adjusted R2

Portfolio 0.85
Benchmark 0.99

Intercept

Portfolio -0.00
Benchmark 0.00

Factor Attribution