Email: info@paritascapital.com   Phone: (203) 717-1620

Quantify The Risk

We calculate the risk of each individual asset in our portfolio to ensure we know exactly how it is behaving.

We analyze prices to determine movements and calculate statistics, such as correlation and volatility, that help us construct our risk value.

If risk is unknown, it cannot be managed. We are able to effectively manage risk by being able to quantify it.

Optimize the Risk

We use the power of today's computers to calculate the optimal amount of capital needed to achieve a specific risk target for each asset.

The optimizer evaluates each asset in the portfolio and determines whether or not it is contributing the right amount of risk to the overall portfolio.

Allocate the Capital

We invest the assets in the portfolio according to the capital amounts calculated during our optimization.

Paritas Global Wealth Strategy

A balanced risk management approach – avoiding large drawdowns – ultimately delivers long-term outperformance and superior risk adjusted returns.

Lower risk doesn’t mean settling for lower returns.

Balance The Risk,
Then Invest Capital

We construct a globally diversified portfolio that is invested across multiple asset classes and segments.

  • We focus on maintaining constant risk among the four major asset classes.
  • Capital is reallocated to maintain a constant risk target, rather than static capital targets.
  • Relative overweight (underweight) can be determined by comparing allocations to the longer term average.

1Allocation as of 6/30/2017
Asset allocation/diversification does not guarantee a profit or eliminate the risk of loss. Past performance is not a guarantee of future results.

Downside Protection

Higher Risk-Adjusted Returns

Performance Consistency

Direct Access to PM Team

Why Focus On Risk?

Risk defines the outcome for most investors’ portfolios

Portfolio wealth must be managed to withstand unexpected market shocks. Therefore, risk must be managed effectively through careful analysis and quantification.

Clients are focused on protecting losses and so are we

We define risk as the probability of a negative outcome.

Risk can be quantified

Traditionally, investors have attempted to predict the unpredictable and focused on forecasting events and results. We analyze market data to construct optimized portfolios for the current risk environment.

Lean More About Balanced Risk

Systematic Rebalancing Adds Value

Risk is constantly changing, portfolios should be adaptive

The success of the Global Wealth Strategy is a function of our ability to reallocate capital in line with our proprietary research on market risk.

Monitoring Risk 24/7

We monitor our portfolios to ensure that the risk targets have been met and that each account is optimized for the current market environment.

Tax-efficient trading

Our trading process is tax-aware; our goal is to provide investors with high after-tax returns.


The Best of All Worlds

Actively managed SMA using passive ETFs

We’ve diligently researched how to construct a global balanced risk portfolio with an active top-down strategy combined with highly-liquid passive ETF investments.

Pure asset class exposure with minimal overlap

GWS invests in “best fit” asset class indices. The portfolio has minimal overlap in its holdings, unlike the composition of many peer group competitors.

Low cost and highly effective

Every ETF holding is scrutinized for quality and cost. The GWS “all weather” portfolio is a solid long-term core holding for most risk-averse investors.


A Repeatable Investment Process

Our quantitative investment process is designed to deliver consistently high risk-adjusted returns

  • Step 1. Quantify

    Calculate the risk that each asset contributes to the portfolio

  • Step 2. Optimize

    Determine the appropriate amount of capital for each asset to achieve a balanced target risk level

  • Step 3. Allocate

    Rebalance the assets in the portfolio to match the new target allocations

GWS By the Numbers: Model and Live Data

A Common Sense Approach to Building and Protecting Wealth

Over the past decade, the GWS simulation has outperformed other asset classes over time with an exceptionally low risk profile.

The simulated portfolio delivered the highest annualized returns among many different types of investments. The GWS simulation also ranked among the lowest in terms of risk.

This chart demonstrates the difficulty investors have in trying to forecast the best performing asset segments each year. By simply finishing in the middle of the chart, investors can significantly benefit over the long-term.

Through careful and disciplined analysis, GWS simulation model blends these asset segments to create a risk-based investment portfolio that has the ability to deliver consistently high risk adjusted returns.

Model Performance

The simulated return of the Global Wealth Strategy model portfolio through 06/30/2017 is 9.28% annualized net of a pro forma 0.60% management fee.  The strategy was 41% less volatile than the S&P 500 Total Return.1

1Calculated for the period 01/01/2005 to 06/30/2017 and net of pro-forma management fees of 0.60%.

Hypothetical Growth of $1,000,000

Additional Statistics

Name Annualized Return1 Cumulative Return1 Standard Deviation1 Sharpe Ratio1
Global Wealth Strategy (Net) 9.28% 203.19% 8.25% 0.98
Benchmark 5.79% 102.07% 9.50% 0.48
S&P 500 Total Return 7.94% 159.97% 13.91% 0.48

1Calculated for the period 01/01/2005 to 06/30/2017 and net of pro-forma management fees of 0.60%.
Benchmark is a blended index consisting of 60% MSCI All Country World Index and 40% Barclays US Aggregate Bond Index

Important Disclosures

Back-tested performance is not an indication of future actual results nor does such pro forma performance information negate the lack of actual performance history of the strategies described herein. As they are calculated by the retroactive application of a model constructed on the basis of historical data, back-tested performance results are hypothetical in nature, and do not represent returns that any investor actually attained. The calculations are based on assumptions integral to the model, including assumptions which (i) may or may not be testable and are therefore subject to losses; and (ii) have been made for modeling purposes and are unlikely to be realized. No representations and warranties are made as to the reasonableness of the assumptions, and changes in such assumptions may have a material impact on the back-tested returns presented. Back-tested performance is developed with the benefit of hindsight and has inherent limitations, primarily that such results do not reflect actual trading or the effect of material economic and market factors. Since trades have not actually been executed, back-tested performance may not reflect the impact that certain economic or market factors may have had on the decision-making process. Further, back-testing allows the security selection methodology to be adjusted until past returns are maximized. Actual performance may differ significantly from back-tested performance. Back-tested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, do not include the effect of back-tested transaction costs. From time to time, Paritas may alter its investment models. As a result, the back-tested asset allocations provided herein may not reflect actual model portfolio allocations, and these time varied model changes could provide favorable or unfavorable performance differences. Back-tested performance data assumes a single investment, and involves no subsequent cash balance or cash flows in relevant calculations. Variable cash flows resulting from actual implementation of the model over time will create a material distortion from the back-tested performance data as represented herein. Please note all regulatory considerations regarding the presentation of fees must be taken into account. Back-tested performance results set forth herein are net of a pro forma management fee of 0.60% and ETF/ETN expense ratios where applicable.

Live Performance (Since 7/1/2015)

Growth of $1,000,000

Additional Statistics

Name Annualized Return1 Cumulative Return1 Standard Deviation1 Sharpe Ratio1
Global Wealth Strategy (Gross) 5.23% 10.77% 6.45% 0.77
Global Wealth Strategy (Net) 4.60% 9.42% 6.45% 0.67
Benchmark 5.49% 11.28% 6.97% 0.74

1Calculated for the period 07/01/2015 to 06/30/2017
Benchmark is a blended index consisting of 60% MSCI All Country World Index and 40% Barclays US Aggregate Bond Index

Important Disclosures

Stonegate International Administration LLC has completed an examination in accordance with the performance examination procedures set forth in the GIPS® standards of the Global Wealth Strategy composite maintained by Paritas for the periods July 1, 2015 through February 28, 2017. It is Stonegate’s opinion that the performance results of this composite for the aforementioned period, are presented, in all material respects, in conformity with the GIPS® standards. A pro forma 0.60% management fee was applied to the gross performance of the GWS composite to arrive at net performance.

The benchmark index referred to herein is a blend of 60% MSCI ACWI index and 40% Barclays US Aggregate Bond Index.  The indices included to show relative market performance for the periods indicated and are not necessarily standards of comparison, since indices are unmanaged, broadly based and differ in numerous respects from the GWS composite.  Market index information was compiled from sources that Paritas believes to be reliable. However, Paritas does not guarantee the accuracy or completeness of such data. An investment in accordance with the GWS composite may not be suitable for all investors.  This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, investment, accounting, legal or tax advice.Investing involves risk, including the potential of loss of some or all principal invested.  Interested parties are encouraged to review Paritas’ Form ADV Part 2, as well as pertinent prospectus/product descriptions to consider such risk prior to investing.  There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.  stock investing involves risk including loss of principal. Past performance is no guarantee or promise of future success.

Benefits

Success is best measured by the results and the experience we can deliver to clients. We believe the Global Wealth Strategy can offer many important and appealing benefits to investors.

Recent Portfolio Commentaries

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