Acanto LLC
Financial Services - New York, New York, United States
Acanto LLC Employees
Acanto LLC Details
What we do:Acanto uses proprietary Risk Parity, Volatility, and Market Sentiment algorithms to build portfolios that achieve superior risk-return characteristics. Market Sentiment is used as a short term forecast to invest in Equities, Bonds, or Both. Changes in Volatility limit how much exposure we can take in any one asset class and finally, Risk Parity focuses on allocation of risk, rather than allocation of capital to build investment portfolios. The risk parity approach asserts that when asset allocations are adjusted to the same risk level, the risk parity portfolio can achieve a higher Sharpe ratio and can be more resistant to market downturns than the traditional portfolio. Risk Parity was developed in the 1990s with many of its theoretical components developed in the 1950s and 1960s by Markowitz, Treynor, Sharpe, Lintner, and Mossin. It was first applied by Ray Dalio on an institutional level in 1996, and quickly adopted by most major institutional managers and large hedge funds. Our Approach:Acanto analyses Macroeconomic and Market Sentiment data sets collected from over 1,500 institutional asset managers on a weekly basis that are interpreted using Artificial Intelligence, neural networks, and other proprietary techniques. This produces forecasted probabilities weighting that predict short term shifts between various asset classes. Once we calculate the weighted probabilities of each individual asset classes' future performance, we then use an ALPHA LAYER to set the general tendency of each asset class within the portfolio. A SCALING LAYER is then added using the Risk Parity score to determine the maximum allocation of each particular asset class. Finally, those weightings are bound by the proprietary DeltaVol comparison of historical to current volatility of each asset. Allocations are rebalanced weekly to assure timely adjustments to portfolios.
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