We combine the benefits of passive and active investing.
Unlike other robo-advisors that simply offer third party index ETFs, Polaris Portfolios provides clients with direct access to our institutional, rules-based equity strategies. Once solely reserved for private wealth managers, these strategies are designed to outperform their market benchmark and are available to all Polaris Portfolios clients regardless of account size, at no extra charge.
Strategy Construction Process:
We believe empirically derived, style focused strategies can systematically exploit market inefficiencies, offering the potential for superior risk adjusted investment returns. Each one of our strategies is designed to capture and exploit the risk premiums distinct to a particular investment style to the fullest extent. We design all of our strategies using a 4-step process.
1.) Define Risk Premium: Each strategy we offer is designed to capture the risk premiums associated with a particular investment style.
2.) Identify Alpha Factors: Our design process begins by identifying the alpha factors distinct to a particular investment style.
3.) Design Strategy Rules: We construct rules to systematically capture the identified alpha factors.
4.) Construct Model: We combine the rules into a proprietary investment model. The model is used to rank the attractiveness of stocks in a particular universe. Only stocks with the best scores are incorporated into the strategy.
Benefits Of Our Strategies
Our proprietary, institutional strategies combine the benefits of passive and active investing, setting us apart from other digital advisors that simply employ third-party index ETF's.
Our institutional strategies combine the benefits of active and passive investing.
Active Management Benefits
Each strategy is designed to outperform its respective market benchmark.
You directly own the underlying securities in your portfolio. This reduces slippage and allows for effective tax management.
Each strategy targets an investment style at a particular level of market capitalization - allowing us to construct a portfolio tailored to your needs.
Passive Management Benefits
Rules Based Investing
Our rules based approach limits the behavioral mistakes that typically plague the returns of active managers.
Dollar Based Investing
Investing in dollar amounts rather than shares allows for a more efficient allocation of your capital.
You know exactly which companies your hard-earned dollars are invested in.