Research
“Peeky” Blinders
When individuals have uncertainty about a specific product or idea, they will often look to what their peer group is doing to help them decide. Social proof is a behavioural bias that can lead to decision making errors. By embracing a process-driven research flow to guard against behavioural biases and data peeking, Viewpoint can distinguish between true and false alpha.
Research
Plot Twist: Your Bond Portfolio May Be Riskier Than You Think
Geek Level: Read Time: The Speed Read: Bonds are traditionally thought of as risk-free or safe-haven assets. However, fixed income investments have unique risks relating to their sensitivity to interest rate fluctuations. Sensitivity to interest rates movements means that bonds are not risk-free, especially if not held until maturity. Modified duration measures the sensitivity of […]
Research
Rising From the Ashes
Geek Level: Read Time: The Speed Read: Diversification is the first line of defence for an investment portfolio. Utilizing a risk-parity engine for portfolio construction creates a portfolio that reduces the severity of drawdowns while increasing expected returns. Volatility scaling to tactically adjust the portfolio’s gross exposure acts as a stabilizing force in time of […]
Research
Rewiring Your Amygdala: The Practical Application of Trend in an Investment Portfolio
Geek Level: Read Time: When an individual contemplates whether they want to make an investment, generally the first thoughts revolve around return expectations. If I am willing to invest in a company, either through debt or equity, what is my expected return, and is the return enough for me to feel comfortable with the risk […]