Investment Philosophy

Harvesting the Diversification Premium™

Risk allocation, not capital allocation — a more comprehensive view of diversification, powered by our Risk Allocation Engine.

Risk Allocation Engine

Risk allocation vs. capital allocation

Conventional portfolios allocate capital — and end up dominated by the risk of their largest holding. We allocate risk: balancing each asset's contribution to total portfolio risk, then prudently applying liquid leverage to reach the desired return target.

A conventional 60/40 portfolio

Capital
60% equities 40% bonds
Risk
≈90% equity risk

Sixty percent of the capital — but nearly all of the risk — sits in one asset class.

Source: Qian, “Risk Parity Portfolios: Efficient Portfolios Through True Diversification,” PanAgora Asset Management (2005).

A risk-allocated portfolio

Risk
Equities Bonds Commodities
Capital
Diversified portfolio + leverage

Risk is balanced across asset classes; prudent liquid leverage lifts the diversified portfolio to the desired return target. Leverage can magnify both gains and losses and can increase risk. Illustrative.

Source: Viewpoint Internal.

Interactive

The diversification premium in action

Step through how risk allocation plus prudent leverage captures return that concentration leaves behind.

Step 1 of 4

What we do

We seek to capture the diversification premium we believe exists in markets — the return investors leave on the table when they choose concentration over diversification.

“Diversification is the only free lunch in financial markets.”

The time-tested principle our strategies are built on

Why Viewpoint

Investor-focused, investor-led

We forgo forecasts for facts.

Our evidence-based approach

Levered diversification

Diversification, prudently levered — pursuing fuller returns without concentration risk. Leverage can magnify both gains and losses.

Low-cost and liquid

The low fees and daily liquidity of systematic investing, with active risk allocation.

Risk aware

Designed for consistency across economic cycles by managing risk, not return assumptions.

Evidence-based

Transparent, rules-based strategies built from data — we forgo forecasts for facts.

Aligned

Our founding family and partners invest their own capital alongside yours, on equal terms.

Active where it counts

Active in market selection, adaptation, and leverage — the decisions that actually matter.

Research process

Continuous, innovative research

Our Quantitative Strategy Delivery Lifecycle integrates advanced data science with a well-defined analytical framework — a consistent, repeatable method for portfolio construction grounded in both human insight and vast amounts of data. We do not deviate from it.

Our convictions

Building success on a strong foundation

01 Leverage aversion creates an inefficiency in markets.

The prudent use of liquid leverage can unlock the power of diversification, and is a powerful tool when applied judiciously and systematically.

02 We believe there are clear benefits to investing globally.

Most investor portfolios are heavily weighted towards their home country, which can have detrimental effects on their portfolio.

03 We believe an orientation towards research will result in superior outcomes.

We believe that combining time-tested research with a learning mindset and a commitment to continuous improvement will lead to great results.

04 Having a long-term mindset is a competitive advantage.

Investors who can take a long-term view should do so — the best investment strategy is one an investor can stick to.

05 Markets are macro-inefficient, and micro-efficient.

Due primarily to the structure of the money-management industry, multi-asset strategies can take advantage of structural inefficiencies.