Accumulator's Inflation-Hedged Portfolio

Portfolio Specification

Portfolio Description

Most truly diversified portfolios have lower expected returns because they allocate away from higher-risk/higher-return assets to make room for uncorrelated assets. This portfolio utilizes leverage to reach higher expected returns while maintaining exposure to bonds, commodities, and managed futures. Objectives:

  • Maintain a global equity beta of ~1.00

  • Neutralize exposure to inflation shocks

  • Maximize the utility function of an investor with a risk aversion coefficient of 1

Policy Report

Backtest Report

From to (11y 5m 10d)

Returns (annualized)

Portfolio 10.60%
Benchmark 10.96%

Risk (annualized)

Portfolio 16.84%
Benchmark 17.77%

Sharpe (annualized)

Portfolio 0.57
Benchmark 0.56

Excess Return (annualized)

-0.36%

Tracking Error (annualized)

13.36%

Information Ratio

-0.03
Statistic Portfolio Benchmark
Downside Volatility 18.19% 19.08%
Sortino Ratio 0.52 0.52
Calmar Ratio 0.33 0.29
Ulcer Index 14.60 15.05
Max Drawdown 29.21% 33.97%
VaR (99% Confidence) $-3,917 $-4,132
VaR (99.9% Confidence) $-5,203 $-5,489
Beta to Benchmark 0.67 N/A

Value at Risk (VaR) is calculated off a $10,000 portfolio value.

Growth Charts

Historical Weights

Return Distribution

Excess Kurtosis

4.85

Skew

-0.60
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Duration Factor 1.0046 0.0286 0.9760
Inflation Factor 0.4479 0.0407 0.4072
Market Factor 0.9217 0.9537 -0.0320
Size Factor 0.1237 0.0380 0.0857
Style Factor 0.0689 0.0299 0.0390
U.S. Tilt (Non U.S.) -0.1337 0.0038 -0.1375
Yield Curve Factor 0.2214 -0.0134 0.2348

Adjusted R2

Portfolio 0.87
Benchmark 0.83

Intercept

Portfolio -0.00
Benchmark 0.00

Factor Attribution