The Challenge

A large part of active portfolio managers and mutual funds continue to underperform the relevant benchmarks. The shift of assets from active strategies to passive products is increasing the pressure on asset and wealth managers to find a fix. Pretending to achieve different results in performance while changing nothing in the investment decision process is not a credible plan. It is time to prove that active management can deliver alpha and beat the indices. Advanced analytics and last generation tools can change the game and contribute to improve returns and better control the risks to underperform.

The Solution

The solution is simple. It is just about adding to any strategy an intelligent layer of “trend validation”. Investment returns are the combined results of the actual exposure to the price trends of the selected holdings. It is critical to pay attention and respect to the actual price trends for individual stocks, that today are governed more by money flow than by fundamentals. Whatever is the investment style an objective validation of the medium-term trend across the selected investment universe enables to achieve an efficient “trend allocation“  structure of the portfolio.

The main reason of underperformance is the wrong trend allocation, that can detract value from  the quality  of the chosen strategy. The easy fix is incorporating in the investment strategy well proven “trend intelligence” that can discriminate opportunities and validate the selection of securities from the chosen investment universe. The better the selection of the trends and the larger the trend allocation to bull trends, the bigger the return. The phenomenon of performance dispersion across stocks is a gold mine for investors with the right data and tools. Any list of stocks that satisfy whatever investment criteria (value, growth, size, ESG) will produce winners as well as losers. Not every “good story” will prove to be a rewarding investment in a reasonable time frame.

Combining good fundamentals with “trend validation” proven metrics enables capturing the best of two worlds, providing a robust “sanity check” filter. The Trendrating ‘Strategy Management Solution’ enables investors to create, test, optimize, validate and document active investment strategies combining the desired rules and parameters from a rich list of fundamental data and innovative, objective trend analytics.



Get more information on our Smart Model Portfolios selection rules, statistics and the current list of stocks at

The Importance

Finally there is a solution that sets a new paradigm of measurable, testable  value, in an industry offering  research, contents and tools whose real value is often highly questionable. Trendrating developed a multi-factor model that measures the direction and quality of price trends with a time window of 6-to-18 months. The result is a rating methodology  (A,B,C,D) that contributes to profit from  the performance dispersion, capturing a good part of the top performers while avoiding most of the worst performers in any chosen universe. Our “Strategy Management Solution” supports a number of tasks, leveraging our “rating of trends” . We serve hundreds of professional investors with a rich suite supporting: validation of ideas, identification of new opportunities, alerts on downgrades and upgrades, analysis and optimization of portfolios “trend allocation“, sectors ranking and rotation, test and optimization of investment strategies. The value in terms of performance improvement is easy  to measure in the system and it also documented by our indices. Evidence is available for your valuation.

Next steps

Contact us at [email protected] or contact directly our CRO at [email protected] to learn how you also can easily incorporate our analytics in your existing investment process and measure the impact with full transparency.


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