In this final step, the Research Output document, containing the details of the portfolio strategy, is shared with the entire Investment Committee for discussion and evaluation. The committee assesses the merit and demerit of the strategy based on the research output. If the strategy is deemed promising and has successfully completed all audit checks, it may be finalized for implementation in actual portfolios, both existing and new ones.
Through this process, our aim is to minimize human biases as much as possible and create rule-based methodologies. These methodologies are designed to generate risk adjusted returns that have potential to outperform the benchmark over the long term. The ultimate objective is to simplify the investing experience for both investors and partners.
By implementing rule-based investing methodologies, we ensure that portfolios remain true to their intended investment strategies. This means that the portfolios are aligned with their designated objectives and consistently follow predefined rules.
Furthermore, this approach reduces the need for frequent human intervention in day-to-day portfolio management. With clearly defined rules in place, the reliance on subjective decision-making is minimized. This leads to portfolios with increased consistency and reliability.