Exciting news! Inalytics has been shortlisted for the 2024 Financial Technologies Forum (FTF) News Technology Innovation Awards, in the Best Performance Measurement System category.
Voting has now closed.
See our submission below…
The Inalytics DECSIS attribution framework, which is subject to a patent application, is very much at the disruptive end of the criteria for the award. It isn’t designed for client reporting or compliance it’s to help clients improve investment decisions. We are redefining the attribution space.
The framework captures the way fund managers take decisions during the life cycle of each position, from research through to the close. Quantifying the alpha from the research process that determines which stocks to own, and then the sizing decisions that manages each position while they are in the portfolio. Including the alpha from the buying and selling decisions and in combination.
By focusing on decisions not outcomes, we address the following fundamental questions. “Are we skillful? What are our strengths? Which decisions needed to be improved or stopped altogether?’ Questions that traditional attribution models can’t answer.
At the centre of the model is a recognition that fund managers are people and as such are susceptible to the same biases and emotions as everyone else, which can manifest itself in some of these typical behaviours;
- Positions being held past their ‘sell by date’ and subject to alpha decay due to an unwillingness to accept that the original ‘thesis’ had changed
- Being too timid when entering a position and then waiting for confirmation in the form a strong price rise before taking a full weight
- Selling winners too early and losers too late, in other words ‘cutting the flowers and watering the weeds’.
Behaviours that are common throughout the active equity industry, and ones that can be worked on to materially improve alpha.
The DECSIS framework is specifically built to help clients do exactly that.
Thank you for your ongoing support. This recognition is a testament to the hard work and dedication of our team. We’d be honoured to have your vote.