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By DailyAlts Staff The automation revolution is sweeping the industrial world, and the asset-management industry is no exception. So-called “robo advisors” have been proliferating; seeking to outcompete human alternatives by providing automated investment guidance at a lower overall price point. But most robo advisors are flawed in design, according to Walt Vester, CEO of Huygens Capital. That’s why his firm has worked to produce a better mousetrap – a 100% automated robo advisor that provides investors with U.S. equity exposure in a “tactical, systematic, risk-managed” manner. Dynamic Models Capture Changing Sentiment “Most robo advisors manage risk by constructing an initial, diversified, multi-asset portfolio for a client, and then maintaining that static asset allocation with periodic rebalancing whenever the portfolio deviates from it,” said Mr. Vester, in a recent statement. “The issue with this approach is that no asset class performs well in all market regimes, so at any time the portfolio has some component with a poor risk/return tradeoff.” By contrast, Huygens Capital’s robo-advisor investment system uses proprietary predictive analytics to monitor market conditions daily , rather than monthly or even quarterly. Equity market sentiment can change quickly in response to changes in economic, political, or other factors, and the system re-assesses conditions at market close each day. Huygens’s robo-advisor investment products – listed below – switch between portfolios of U.S. equity index ETFs and U.S. government bond index ETFs according to the firm’s assessment of institutional money-manager sentiment. When the big managers are bullish, Huygens favors stocks; when they’re bearish, Huygens prefers bonds. From Conservative to Growth Huygens’s three robo-advisor investment products are: Pilot Conservative Tactical Income & Growth , which begins with more balanced allocations to stocks and bonds; Pilot Tactical Growth , which starts out with more equity exposure; and Pilot Tactical Aggressive Growth , which uses light leverage to begin with even more initial equity exposure. All three products switch out stocks for bonds when market stress rises, and vice-versa. By offering portfolios focused on income/growth, growth, and aggressive growth, Huygens’s products can more accurately meet the needs of a wider class of investors. “We believe the key to growing our clients assets is to invest them in U.S. equities while striving to protect against periods of high equity market risk,” said Mr. Vester. “Our approach addresses a need not satisfied by today’s robo advisors: giving clients U.S. equity exposure in a tactical, systematic, risk-managed manner.” For more information, visit huygenscapital.com . Scalper1 News
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