Our process is very adaptable

  • The PRATER process can be applied to a wide variety of asset classes and sub-asset classes, including equities, bonds, commodities, and quoted real estate.
  • It can be used to combine the equity indices of different countries or regions, to build a portfolio of government and corporate bonds, or to trade a range of commodity indices.
  • Harlyn maintains over 70 different asset allocation models which select from a wide range of equity, bond, commodity and real-estate indices.
  • These include simple models which switch between two asset classes, such as equities and bonds within the same country…
  • ..and the multi-asset, multi-region models featured on this website.

‘Off the peg’ portfolios do not suit every investor

  • The models featured on this website are compatible with the risk tolerances of most institutional investors who are allowed to invest in equities.
  • We completely understand that “off-the-peg” portfolios do not suit everybody. Each investor has his own list of preferred assets and his own risk appetite.
  • We would be delighted to design a PRATER model based on your chosen group of asset classes, in the currency of your choice, with whatever volatility limits you wish to impose.

We can use leverage or restrict volatility

  • We can also introduce leverage, as a fixed or variable percentage of the capital invested, without significantly altering the return per unit of risk (a.k.a. the Sharpe ratio).
  • Leverage will increase the returns when the model goes up and increase the losses when the model goes down. And there will always be periods when the model goes down, however much we would like it not to.
  • We can also design models which target a pre-agreed (i.e. low) level of volatility. We normally do this by introducing a fixed or variable amount of cash into the portfolio, but we can also restrict the exposure to high risk assets.
  • We prefer the first method because there should be minimal impact on the Sharpe ratio, but the process is very flexible and can accommodate all sorts of investor preferences.

We can design a model tailored to your needs

  • We understand that many investors do not have a completely blank sheet of paper when it comes to asset allocation.
  •  Some may not be allowed to invest in commodities, or may have maximum limit on their emerging market exposure.
  • We welcome the chance to show how flexible approach can be. If you don’t like any of the models featured on this website, let us tailor one to your specific mandate.
  • All our models are tested for a minimum of 15 years they leave the design stage.  For tailored models we are happy to go back as far as the data permit.
  • We always recommend a period of live test-running before final implementation.
  • For a more detailed discussion, just contact us on info@harlynresearch.com.