Investment Philosophy

Investment is about information edge, which largely is to decide where to compete and where to comply with the traditional wisdom and average knowledge. If we know nothing about the forward return/risk attribution of various asset classes, the ideal portfolio would be an equal weighted one. To deviate from this dummy portfolio, investors must know something about the future. Unfortunately, people are just too satisfied with the assumption that the past will be repeated in the future when they choose the inputs of the return/risk attributions.

At RiskFile, we propose a different way.

We opine that the a scientific decision making platform should be process driven and quants model based. Key projections needs to be incorporated to an optimal portfolio construction engine which gives best return-risk tradeoff to the investors.

For the top-down part of the process, the macro economy and the capital markets are inter-related and there is a identifiable reaction pattern among all the watchable factors. By applying Riskfile’s revolutionary techniques, the reaction pattern reveals itself and functions as the base to frame the current situation, to compare it to similar historical times and to formulate the most possible scenarios.

For the bottom-up part of the process, our quantitative research of China A share stock and US S&P 500 companies serve as a good example.