Portfolio Analytics

Ockham Institutional Services
Portfolio Analytics

Ockham Research offers institutional clients its Portfolio Analytics services.  Working with each client, Ockham analyzes the holdings of each portfolio from our value framework to identify potential rebalancing options.  Ockham's track record for identifying over-valued securities is one of our most popular services.

Recognizing that institutional investors have access to immense amounts of research, our process is designed to work with each manager's daily investment process.  Our goal at Ockham is to do the financial due diligence to either confirm or challenge your own research findings.

A sample Portfolio Analysis on the Financial Services large cap companies is shown here.  The vertical axis shows the performance of the stock.  We can adjust a time period to your specifications (previous quarter, two quarters, year, etc).  On the horizontal axis we have our Ockham Rating, with strongly negative on the far left and strong positive on the far right.  The securities that are highlighted in orange are those that have an acceptable Quality Score, if the stock is not highlighted we hesitate to recommend it.  In this illustration, a security should move counter clockwise on the scatter plot as it progresses through the Value Stock Life Cycle.

We are most interested in the securities in the bottom-right quadrant.  We see these as the most undervalued and best potential for price appreciation.  Moving counter clockwise, we still like the securities located within the top-right quadrant, but as their prices appreciate, they tend to become more fairly valued in our methodology and thus begin to move to the left.  Once the security is in the top-left quadrant, we have a negative valuation on it and may even promote its removal from the portfolio.  It is in this stage that we recommend identifying new investment prospects or for a client to exercise their own exit timing strategy.  The final quadrant is for securities that we have a negative rating as well as a declining stock price.

The Portfolio Analysis Tool is also utilized for idea generation.  We analyze sectors and industries at our clients request to highlight which securities have the greatest appreciation potential.  This allows our clients to then focus their additional research efforts and avoid the painstaking process of analyzing too many securities.