EVERY PORTFOLIO TELLS A STORY
Our Journey
Innovation Beta launched in 2018 to develop algorithms to identify investor conviction. Conviction is important because many academic studies point to “best ideas” or conviction as a source of investment outperformance.
Our work began with using machine learning techniques to identify the trading behaviors that would be evidence for convi
Innovation Beta launched in 2018 to develop algorithms to identify investor conviction. Conviction is important because many academic studies point to “best ideas” or conviction as a source of investment outperformance.
Our work began with using machine learning techniques to identify the trading behaviors that would be evidence for conviction. There was a lot to investigate:
Was it the largest positions in a portfolio? The most recent buys? An industry concentration? A high active share?
The possibilities were vast and we analyzed the data looking for an answer. We eventually found a measurement that captured the essence of conviction and signaled a chance to overweight that stock. It also worked on the opposite - low conviction scores were to be avoided.
The original plan was to build a conviction-themed suite of indices and ETFs, but the market appetite for smart beta products wasn't there from a small shop like outs. The real business turned out to be our highly searchable database that produced data for quants, financial executives, public and investor relations professionals, and journalists.
Just wait - we'll bring back the Conviction signals for your review.
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Welcome. @PortfolioStory is my place share interesting tales about stocks and investing using genuine trades from experienced investors. Like fingerprints at a crime scene, stock trading and portfolio construction reveal an investor’s thinking in a rapidly changing world. No investor has the perfect crystal ball, but changes in stock ow
Welcome. @PortfolioStory is my place share interesting tales about stocks and investing using genuine trades from experienced investors. Like fingerprints at a crime scene, stock trading and portfolio construction reveal an investor’s thinking in a rapidly changing world. No investor has the perfect crystal ball, but changes in stock ownership offer clues about what may be next. It is not investment advice, but readers will find insight, for “Every Portfolio Tells A Story.”
Our most recent content his X and LinkedIn before this site.
Follow on X (Twitter) @PortfolioStory
LinkedIn: https://www.linkedin.com/in/tsgalbraith/
After working for years with institutional clients, we are now making our database more broadly available. Give us time to improve this page!
13F Data is Serious Business
13F Data is Serious Business
The SEC proposed in 2020 to change the reporting limit for investment advisors from $100 million to $3.5 billion. This would eliminate over 4,000 advisors from the quarterly reporting requirement that has been in effect for over 40 years. Investors need more transparency not less. The SEC eventually agreed not to proceed with proposed cha
The SEC proposed in 2020 to change the reporting limit for investment advisors from $100 million to $3.5 billion. This would eliminate over 4,000 advisors from the quarterly reporting requirement that has been in effect for over 40 years. Investors need more transparency not less. The SEC eventually agreed not to proceed with proposed change.
But uproar about the proposed change highlighted how the use the data, and particularly our database, can extract the detail to make informed decisions. Our letter to SEC is available in the Downland section.