Stanford Global Allocation Strategies Investment Process
1. Identify Opportunities
The Stanford Investment Philosophy process pursues opportunistic areas anywhere in the world by constantly studying countries, sectors and global markets. We undertake thorough research, including our multi-factor regression model, relative value analysis and various economic indicators, to determine how investment opportunities will perform in light of factors such as interest rates, industry movement and global markets.
2. Analyze Current Allocation
To increase the likelihood of reaching your investment goals while adjusting to changing world conditions, we apply a five-tier test to potential investment opportunities, maximizing diversification and non-correlation. We perform research not only on levels of risk and degrees of correlation, but also on dynamic global economies – working to anticipate the highs and lows of seasonality, geopolitical influences and other forces. All of these factors are compared to your current holdings to promote the best possible performance.
3. Determine Opportunity
After a period of initial research and analysis, the investment selection process begins to narrow down opportunities with the most potential to enhance your portfolio. Once we have identified one area of value, its effect on the risk/return characteristics of your portfolio is analyzed. If the investment’s characteristics prove appropriate, it will be added to your investment portfolio.
4. Select Investment
We apply our proprietary 15-point quantitative and 10-point qualitative models to opportunistic investment areas, and we compare them to various benchmarks to determine how their performance measures up to both market indices and peer groups. When the score is computed, a short list of investments is processed to find "best of breed" performers.
5. Optimize Allocation
Once appropriate investments are identified, the allocation is optimized to suit your specific needs.
