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 3m 24d)

Returns (annualized)

Portfolio 10.14%
Benchmark 10.47%

Risk (annualized)

Portfolio 16.86%
Benchmark 17.74%

Sharpe (annualized)

Portfolio 0.54
Benchmark 0.54

Excess Return (annualized)

-0.33%

Tracking Error (annualized)

13.37%

Information Ratio

-0.02
Statistic Portfolio Benchmark
Downside Volatility 18.21% 19.08%
Sortino Ratio 0.50 0.50
Calmar Ratio 0.31 0.28
Ulcer Index 14.60 15.05
Max Drawdown 29.21% 33.97%
VaR (99% Confidence) $-3,921 $-4,126
VaR (99.9% Confidence) $-5,209 $-5,480
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

4.88

Skew

-0.60
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Duration Factor 1.0069 0.0288 0.9781
Inflation Factor 0.4305 0.0430 0.3876
Market Factor 0.9274 0.9528 -0.0254
Size Factor 0.1267 0.0372 0.0895
Style Factor 0.0643 0.0309 0.0334
U.S. Tilt (Non U.S.) -0.1428 0.0053 -0.1481
Yield Curve Factor 0.2222 -0.0135 0.2358

Adjusted R2

Portfolio 0.87
Benchmark 0.83

Intercept

Portfolio -0.00
Benchmark 0.00

Factor Attribution