Downside Protected Portfolios

Asset Management

Infanger Investment Technology is an SEC-registered investment advisor that helps sophisticated investors achieve superior returns without taking on unacceptable risk. We employ purely quantitative investment techniques both for selecting assets and for constructing diversified portfolios. The objective of each of our funds is to outperform its respective market benchmark while maintaining similar risk exposure.

Infanger Investment Technology puts its proprietary quantitative and mathematical processes to work in two distinct ways:  (1) global asset allocation strategies that invest in balanced portfolios of equities from four world regions and fixed-income securities of various maturities and (2) regional equity strategies of investments in the U.S. and in the European Union markets.

We are committed to the consistent, impartial and unemotional application of our quantitative processes on our clients’ behalf. We are equally committed to providing our clients with the highest levels of service – service that is as personal as it is professional.

Process and Implementation

Our portfolio manager, Dr. Gerd Infanger, has extensive experience in managing investment funds based on sophisticated quantitative portfolio strategies. He is moreover internationally recognized as a leader in stochastic optimization and its applications in finance. Based on his research and experience, he has designed a rigorous and objective quantitative process of investment selection, portfolio construction and performance monitoring. The first step in the investment process is to rank potential investments according to their expected performance in upcoming periods. For that we use proprietary quantitative metrics applied to various predicting factors. The metrics and the factors are selected appropriate to each fund, naturally being quite different for asset allocation and equity selection. In the case of asset allocation, our factors predict rotations in world equity market performance and shifts in returns between equity and interest-bearing asset classes. In the case of equity selection, our factors measure company fundamentals and other attributes, such as price momentum, to predict changes in relative performance over market cycles, including value and growth rotations over time.

Our metrics are based on both multivariate linear regression and our own proprietary nonlinear multivariate discriminant analysis. The latter estimates the probability of outperformance versus underperformance given the values of the factors. Given the output of the investment selection process, we employ our own portfolio optimization software to construct properly diversified portfolios. The optimizations balance expected performance versus appropriate measures of risk (e.g., volatility and/or tracking error), while enforcing side constraints arising from the design of the various fund strategies (e.g., maximum factor and sector exposures, bounds on holdings, maximum turnover, and transaction costs). Using the controls over the optimization, we tilt the resulting portfolios towards outperforming the fundsí benchmarks while maintaining similar levels of risk. Through rigorous simulation and backtesting analysis we calibrate the strategies so as to control other performance measures such as maximum drawdown, Sharpe ratio and information ratio.

Monitoring and Assessment

We carefully monitor each portfolio to ensure that it continues to meet our quality and performance standards and remains aligned with the fund's investment objectives and risk profiles. Performance statistics are reviewed on a regular basis and portfolio adjustments are made if indicated.