We take a data driven and quantitative approach to select our actively managed investments, while utilizing proprietary risk management frameworks to minimize drawdowns.
We gather and back test datasets, ranging from asset prices and trading volumes to rate of change of volatility surface in financial markets; anything that might help us to predict financial markets, not based on narratives (i.e., what you see on Financial News).
A risk management process that utilizes three core inputs - price, volume, and volatility - to determine the likely price range for any publicly traded asset class.
Bringing in Institutional level investing practices such as active risk management, factor-based and quantitative investing practices to individual investors without the high fees or high minimum investment requirements
large gains and losses are concentrated into small packages of time. Most “investment managers” often advise their clients to buy and hold and focus on the average annual increases in prices. They do not try to “time the market” and seek the golden moment to buy and hold. We feel their approach is flawed. What matters is the particulars, not the average, it is the timing too that is key. To illustrate this point, in 2019 fully 40 percent of positive returns from Standard & Poor’s 500 (S&P 500) index came during just 10 days-about .5 percent of the time
Markets are turbulent, deceptive, prone to bubbles, and infested by false trends. It may well be that you cannot forecast future prices, but evaluating risk is another matter. Volatility clusters and large price changes tend to be followed by more large price changes; positive or negative. Meaning with the right quantitative tools you can measure the odds of future market volatility across various asset classes.
Value is a touchstone to most people. Financial analysts try to estimate it as they study company’s books. This implies value is somehow a single number that is a rational, solvable function of information. Meaning it is a mean, an average, something certain in a chaos of conflicting information. Most people like the comfort of such thinking and an easy marketing gambit for investment management firms to sell to their potential clients. However, we believe investing based on “Value” is too simplistic and yields to poor results. If turbulent markets of the past few decades have taught us anything it is that value is a slippery concept and one whose usefulness is vastly over-rated.
Before you invest with R2IM we invite you to learn about our process. To appreciate our true value, our potential investors must first understand the basic principles that separate R2IM from other investment management firms. We know that most companies claim a lot of unrealistic things that usually are built around deceptive tactics. However, when you look at our philosophy, investment, and risk management processes you will see we are not your typical investment management firm.
R2IM was created with the vision of leveling the playing field between EVERYDAY investors and some of the most sophisticated hedge fund firms on Wall Street. We are a privately owned, independent investment management firm that specializes in Quantitative Investment Management. Our independent mindset means we can avoid the pitfalls of institutionalized money management—and focus on achieving real returns for each client.