New Frontier is an employee-owned, Boston-based institutional research and investment advisory firm specializing in the development and application of state-of-the-art investment technology. Our mission is to develop and apply institutional quality investment methods and technology to the practice of asset management. We offer patented research, software built on our research and experience, and investment products developed with our software, and we have been an institutional ETF manager for over a decade.
We began with an improvement of mean variance optimization, which had been the standard portfolio optimization process for almost fifty years.
Dr. Richard Michaud and Robert Michaud developed Michaud Resampled Efficiency™, a portfolio optimization process that accounts for the uncertainty inherent in investment. In 1998, Dr. Michaud published his findings in Efficient Asset Management: A Practical Guide to Stock Portfolio Optimization and Asset Allocation (Harvard University Press, 1998 and Oxford University Press, 2008). The book garnered immediate attention. The following year, the Michauds patented Michaud optimization and founded New Frontier.
Michaud optimization was only the beginning of New Frontier's contributions to modern finance. Since then, New Frontier has been awarded three more patents for innovations in investment management. Other important innovations include the patented Michaud-Esch Rebalancing Test, Forecast Confidence™, and post-optimization tools.