AlphaCore Capital, a La Jolla-based wealth management firm, has launched factorE, a wealthtech tool powered by machine learning, designed to uncover the risks and exposures of multi-asset portfolios through visual simulations on a single interface.
AlphaCore designed factorE to help advisors, portfolio managers and analysts better understand the factors impacting today’s diverse portfolios.
“Our team at AlphaCore searched for a solution to effectively manage complex portfolios that may hold a combination of mutual funds, ETFs, stocks, commodities, and alternative investments,” says Dick Pfister (pictured), CEO and Founder of AlphaCore. “When we couldn’t find one, we partnered with a team of developers who have worked with Qualcomm for decades to create a new proprietary wealth analytics tool.”
The factorE tool allows advisors to build and analyse portfolios with easy to digest visuals that instantly illustrate the risk factors of a portfolio and expose risks that previously may have been hidden.
“We believe portfolio diversification beyond stocks and bonds is key to building and maintaining wealth. Financial professionals need a cost-effective tool that enables them to quickly and simply analye a portfolio’s exposures to the multitude of risk factors impacting returns,says” said Pfister. “Most of the tools on the market today either look at risk with a single-factor approach or cost tens of thousands of dollars.”
Understanding risk factors is especially important for the financial advisor seeking to incorporate alternative investments. “The market volatility we’ve seen so far this year combined with the potential for a continued rise in interest rates highlights the importance of diversification,” says Jonathan Belanger, Director of Research at AlphaCore and architect of factorE.” factorE helps to evaluate factor exposures and can empower users to create an effective allocation strategy for achieving long-term portfolio objectives.”
factorE allows users to look at a variety of risk factors including equity, duration, momentum, value, and credit, along with alternative risk factors like trend following, illiquidity, and hedge fund crowding. This new tool augments more traditional returns-based analysis with machine learning capabilities, enabling users to handle traditional strategies alongside alternative strategies such as long/short equity, relative value, event driven, managed futures and option writing.
With factorE, financial professionals can easily and efficiently demonstrate why changes are made to a portfolio and how the changes may help clients in achieving their financial goals.
factorE has been beta-tested by a cross-section of financial advisors, broker-dealers, bank trusts, family offices and turnkey asset management platforms and is available now at a monthly and annual subscription.
