ProfitScore Update – June 2022
To the clients and friends of ProfitScore:
ProfitScore is primarily a research and development firm, we try and outsource as many business processes as possible that detract from our core. One of our most important fundamentals at ProfitScore is “hypothesis-driven” research where ideas are first formed and then validated or dispelled through rigorous data curation, research, and analysis. It is our experience that this approach leads to more sustainability and less alpha decay vs. general data mining. Below we show a simplified flow chart of our research process.
After extensive analytical, out-of-sample, and live trading testing, program and model design decisions are made. As an example, our equity program development began in 2006 and started being tracked in 2014. ProfitScore is 100% quantitative and uses programs constructed on a foundation of multiple streams of low correlation data, seeking to minimize data-specific risk. Similarly, ProfitScore uses multiple sub-models that also seeks to mitigate model-specific risk. If you are interested in learning more about our research or ProfitScore in general please respond and we would be happy to talk more.
Important disclosure information: Past performance of a ProfitScore index is not an indication of future results. You cannot invest directly in any ProfitScore index. The performance of any ProfitScore index does not represent actual fund or portfolio performance. A fund or portfolio may differ significantly from the securities included in an index. A decision to invest in any such fund or portfolio should not be made in reliance on any of the statements discussed above. Inclusion of a security within any ProfitScore index is not a recommendation by ProfitScore to buy, sell, or hold such security, nor is it considered to be investment advice. Index performance does not reflect any management fees, transaction costs, or other expenses that would be incurred by a portfolio or fund, or brokerage commissions on transactions in fund shares. Such fees, expenses, and commissions would reduce returns. ProfitScore receives compensation in connection with licensing rights to its indices. All information relating to any ProfitScore index is impersonal and not tailored to the specific financial circumstances of any person, entity, or group of persons.