New Age Alpha, co-founded by industry veteran and longtime entrepreneur Julian Kolski, centers its investment approach around mitigating the risk associated with human behavior.
“We think portfolio managers have an imperfect understanding of where alpha comes from. They think in terms of picking winners, where their goal should really be to avoid losers,” says Koski.
New Age Alpha’s actuarial-based investment strategy aims to identify and avoid overpriced stocks driven by human behavior. New Age Alpha’s probability that measures if a company will fail to deliver the growth implied by the stock price is called the Human Factor.
Earlier this month, New Age Alpha launched its first ETFs: AVDR US LargeCap Leading ETF (AVDR) and AVDR US LargeCap ESG ETF (AVDG). The ETF series, appropriately named the Avoiders, seeks to Avoid the losers™ rather than pick stock winners. AVDR, starts with the S&P 500 universe and sheds the 450 stocks with the highest Human Factor score. Similarly, AVDG aims to enhance a portfolios alpha by avoiding low rated ESG companies and those most likely to fail to deliver the growth implied by their stock price.
New Age Alpha’s complimentary tool, the H-Factor System, allows advisors to identify and avoid losers in any portfolio. The tool analyzes and measures the Human Factor of over 5,300 stocks, ETFs and global indexes.
To learn more, register and watch New Age Alpha’s webcast: Uncover a Hidden Risk Lurking in Your Portfolio.
New Age Alpha is a global leader in building actuarial based asset management solutions that aim to inure investor portfolios against an idiosyncratic risk caused by human behavior. Investors are unaware of this risk that leads to loss, cannot be diversified away, and don’t get rewarded for taking it. Unlike firm specific risk, that can often be diversified away, this risk affects stock prices specifically and is caused by human behavior. Through our research we have identified a dramatically differentiated source of alpha that is uncorrelated with traditional risk factors and managers, and as the foundation to our investment approach, we have built a range of actuarial based asset management solutions that aim to mitigate and inure investors’ portfolios against this risk. Avoid the losers by uncovering the hidden risk lurking inside your portfolio. Learn to use our Human Factor probability to build better portfolios. We believe a higher score = higher risk of loss.