The New Frontier Equity Optimizer applies the power of Michaud optimization to equity optimization. Starting from the institutional portfolio manager's usual risk model and alpha forecasts, it delivers the optimal stock portfolio.

The Equity Optimizer improves the investment portfolio construction process by including:

  • The Michaud Resampled Efficient Frontier™
  • Patented Rebalancing Test, which reduces unnecessary trading
  • Forecast Confidence™ levels
  • Statistically significant asset weight ranges
  • Customizable forecasts for investment risk, return, yield, and correlation
  • Composite asset functionality, which removes statistically insignificant stocks from the optimization problem
  • A complete set of optimization constraints (transaction costs, risk penalties, etc.)
  • Long-short optimization
  • Warnings when the target risk exceeds productivity
  • Post-optimization process that adjusts the optimized results for trading practicalities
  • Risk model independence