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 28d)

Returns (annualized)

Portfolio 10.89%
Benchmark 11.20%

Risk (annualized)

Portfolio 16.84%
Benchmark 17.76%

Sharpe (annualized)

Portfolio 0.58
Benchmark 0.58

Excess Return (annualized)

-0.31%

Tracking Error (annualized)

13.33%

Information Ratio

-0.02
Statistic Portfolio Benchmark
Downside Volatility 18.17% 19.04%
Sortino Ratio 0.54 0.54
Calmar Ratio 0.33 0.30
Ulcer Index 14.61 15.06
Max Drawdown 29.21% 33.97%
VaR (99% Confidence) $-3,917 $-4,129
VaR (99.9% Confidence) $-5,203 $-5,485
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

4.83

Skew

-0.60
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Duration Factor 1.0040 0.0282 0.9758
Inflation Factor 0.4520 0.0404 0.4116
Market Factor 0.9205 0.9536 -0.0331
Size Factor 0.1227 0.0378 0.0849
Style Factor 0.0696 0.0294 0.0402
U.S. Tilt (Non U.S.) -0.1306 0.0038 -0.1344
Yield Curve Factor 0.2219 -0.0134 0.2353

Adjusted R2

Portfolio 0.87
Benchmark 0.83

Intercept

Portfolio -0.00
Benchmark 0.00

Factor Attribution