Our Investment strategy is to diversify as much as possible using a hierarchical risk parity (HRP) approach, emphasizing the risk contribution within each model strategy, market and stock – rather than the simple naive cash exposure. We ensure model stability and risk concentration, so that we do not have a high concentration of any singular stock or style using (HRP) and other methods such as “bagging”. In comparison indexes such as OMXC20 have concentrated exposure of 20% to a single Danish healthcare stock “Novo Nordisk”. Similarily Nasdaq 100, has single exposure of over 30% to only 3 stocks: Microsoft, Apple, and Amazon. At ANNOX we consider that an unnecessary and excessive risk.
Equity diversificationANNOX Official2019-11-09T12:18:04+00:00