Asset Allocation Modeling
Asset allocation is among the most important decisions that investors make. Asset allocation has an important role in a portfolio’s long-term return. We believe that modeling the asset mix is one important tool in determining an investor’s long-term strategic asset allocation. Long Street's approach to helping clients make asset allocation decisions is highly customized, and our proprietary Machine Intelligence software is a reflection of that. Long Street's internally developed systems are purposefully designed such that we don't rely on a single model or set of assumptions.
Economic Landscape Optimization
Long Street utilizes a proprietary economic modeling software powered by machine data intelligence to thoroughly analyze the current economic environment for the global economy, regions, asset classes and industries. With this analysis complete, we then forecast returns and weight portfolios according to the highest reward to risk outlook incorporating the optimal investments for each asset class for each geographic region.
Efficient Frontier Optimization
Using historical risk premia of various asset classes, Long Street develops initial estimates of future return, risk, and correlation. In our experience, Efficient Frontier models can be helpful in determining the optimal risk/ return trade-offs associated with different portfolios.
Historic “Stress Test” Model
Using factual, historic data to understand how different portfolios have behaved in past market environments can be a very useful exercise. We have found Stress Test modeling to be particularly informative when evaluating a portfolio’s risk during adverse market conditions (e.g., the 1987 Stock Market Crash, the 1990’s Tech Bubble and the 2008 Global Financial Crisis).
Monte Carlo Model
Long Street's Monte Carlo model allows our clients to use forward-looking asset class risk and return forecasts as part of the asset allocation decision making process. This model uses probabilistic simulations in order to provide an estimated range of future outcomes based on a portfolio’s future estimates of risk and return. In Long Street's experience, such modeling is most useful when evaluating best, worst and base case future returns and/or ending market values for a given portfolio.
At Long Street, we recognize the limitations of asset allocation models and place an emphasis on understanding a client’s practical considerations when providing asset allocation advice.
ESG and SRI
Today, Environmental, Social, and Governance (“ESG”), Socially Responsible Investing (“SRI”), Impact Investing (“II”), and Mission-Related Investing (“MRI”) are increasingly becoming important topics. We help formalize and implement a customized approach that aligns with your unique values, needs and goals. Whether it is incorporating a specific faith’s beliefs or principles into a portfolio, mission-focused strategies, or reviewing community and mission-based investments, Long Street has the expertise and capabilities to assist you. Long Street's ESG/SRI/II/MRI services include:
ESG/SRI/II/MRI policy development
Thematic investment strategy
Small/emerging and/or minority-/women-owned
ESG/SRI/II/MRI exclusionary or negative screens
Customized performance reporting
Long Street utilizes a proprietary investment selection platform powered by quantitative machine intelligence to maximize the return probabilities of individual holdings relative to a projected economic environment. This system along with our Chartered Financial Analysts (CFA) will:
Optimize a Portfolio for a forecasted Economic Environment
Perform Quantitative and Qualitative Analysis
Research a holding, industry, country, or region's Technology and Innovation
Perform Bottom Up Fundamental Analysis
Perform Business Cycle Analysis