Public Market Solutions
Waterloo Capital utilizes proprietary cutting-edge technology to enhance client portfolios and effectively manage risk.
Put AI to Work for You
It’s possible to make much more accurate predictions about future market behavior using machine learning techniques. This insight is the root of our predictive algorithm, Newton Waterloo Chief Investment Officer, Bennett Woodward CFA, has developed a proprietary quantitative model that uses artificial intelligence to identify market trends. The model relies on a neural network, which utilizes historical data, coincident indicators, and current market data to predict directional changes in the market. This quantitative view of the market, strips away the noise and emotion from investing. In a sense, the model brings order to chaos.
The Waterloo Newton Algorithm
The Newton system follows a universe of over 2,000 stocks and 1,000 ETFs and utilizes AI deep-learning algorithms to quantitatively grade each security based macroeconomic, fundamental, and technical factors. We constantly track data such as market prices, trading volumes, macroeconomic factors, and interest rates. The Newton algorithm parses the collected data daily and develops a forecast of asset prices over various time horizons.
Newton is designed to identify the securities with the highest probability of outperforming in the future and maximize allocations to those securities within a set risk tolerance objective. The same methodology provides excellent risk control by identifying sell targets and protecting portfolios from outsized market selloffs. Our proprietary models are traded based on Newton software outputs, bottom-up fundamentals, and technical analysis.
Waterloo provides comprehensive investment consulting services for institutional investors. We’re able to offer specialized services and oversight in the design, implementation, and monitoring of investment policies for university endowments, trade associations, private foundations, hospital and health care providers, nonprofit organizations, and cultural institutions. We will work with your team to set an investment policy statement (IPS) that serves as a guide for setting risk/return targets, asset allocation guidelines, investment vehicle parameters, rebalancing procedures, and client-specific goals. We then provide a plan to meet key objectives of the policy statement while maintaining a focus on the mission of the institution.