You select the goal, we engineer the solution
Cadence Capital Management partners with clients to develop Beta strategies that appropriately address their investment needs and goals. The following diagram outlines our Beta construction process.
The client's desired investment goals, needs, strategy, risk tolerance, and/or investment exposure provides the starting point for Beta construction. We partner with the client to define a strategy and explain any potential hidden risk factors.
Once the investment strategy is defined we develop the Betas governing rules. Factors are analyzed and selected. We then communicate and explain the rules of the Beta(s) to the client.
The portfolio construction rules are evaluated through a series of rigorous back tests and market environment scenarios. Any changes that need to be made to the rules of the portfolio are discussed with the client.
The Beta is passively implemented and re-balanced according to its governing rules.
The Beta is carefully monitored to ensure proper execution. Furthermore, the portfolio rules are checked to make sure the market environment does not render them irrelevant.
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