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 6m 10d)

Returns (annualized)

Portfolio 6.56%
Benchmark 8.09%

Risk (annualized)

Portfolio 8.61%
Benchmark 11.06%

Sharpe (annualized)

Portfolio 0.50
Benchmark 0.54

Excess Return (annualized)

-1.53%

Tracking Error (annualized)

6.94%

Information Ratio

-0.22
Statistic Portfolio Benchmark
Downside Volatility 9.05% 11.95%
Sortino Ratio 0.47 0.50
Calmar Ratio 0.20 0.27
Ulcer Index 15.15 15.23
Max Drawdown 21.26% 22.16%
VaR (99% Confidence) $-2,001 $-2,572
VaR (99.9% Confidence) $-2,659 $-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

6.71

Skew

-0.44
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.3562 0.6195 -0.2632
Style Factor -0.0062 -0.0017 -0.0045
Size Factor 0.0274 0.0151 0.0123
U.S. Tilt (Non U.S.) -0.0758 -0.0134 -0.0624
Duration Factor 0.8845 0.3303 0.5542
Yield Curve Factor 0.0460 0.0204 0.0256
Inflation Factor 0.4842 0.0307 0.4534

Adjusted R2

Portfolio 0.87
Benchmark 0.99

Intercept

Portfolio -0.00
Benchmark 0.00

Factor Attribution