Risk Controlled Portfolio Construction

In conjunction with simulating the portfolio trading behavior, risk controlled portfolio construction allows for the balancing of risk and return mandates. Defining strategy risk metrics, determining related risk exposures, and optimizing a strategy so that both the return and risk objectives are met is the key to a profitable strategy.

ModelStation® Portfolio Optimization

ModelStation combines tools for developing proprietary factor models with a variety of portfolio construction routines that are built on a sound risk management foundation. This integrated approach allows clients to easily rebalance and test new or existing strategies. Existing portfolios may be imported and optimized using third party models from Barra, Northfield, and APT, or custom risk models developed using ModelStation's Model Construction module.

ModelStation provides several choices in optimization that include ClariFI's own state-of-the-art mixed integer portfolio optimizer as well as other third party options for clients that are comfortable with their existing optimization solution.

Key Benefits:

• Better manage portfolio risk and return
• Create and optimize portfolios using your proprietary factor models
• Create optimal hedges for existing positions that neutralize exposures

Feature Summary:

• Support for long only, short only, or long/short portfolios
• Upper and lower bounds of portfolio exposure per stock, industry, or risk factor
• Threshold holding size limits
• Threshold trading size limits
• Maximum turnover limits
• Limits on the number of assets long or short