Value investing elevated
Sophisticatedly Simple
ABOUT S SQUARED ADVISORS
We are a specialized investment firm that believes in the confluence of volatility and value. The inclusion of volatility in our investment process is a significant distinction that sets us apart from other firms. Our strategies reflect that investing in assets exhibiting optimal volatility while backed by high-quality fundamentals can yield considerable risk-adjusted returns.
This methodology allows our factors to work over the long run while reducing numerous measures of risk, including standard deviation and max drawdown. Our systematic approach results in a well-constructed portfolio composed of companies that embody solid balance sheets, are highly profitable, efficiently use capital, and have superior margin of safety. Simply put, S SQUARED ADVISORS is Value Investing Elevated.
INVESTMENT PHILOSOPHY
S SQUARED ADVISORS redefines equity investment management through synergistically combining volatility and value factors to optimize the risk and return profile of our clients’ portfolios in favor of fundamentally strong companies.
our process
Our investment process begins with a diverse market index, excluding financials and utilities. We filter for strong volatility traits, then score based on core values. The top-ranked companies form our MVVP portfolios.
Volatility
VOLATILITY + VALUE = RESULTS
Volatility is a powerful complement to value. We believe in the inherent opportunity it presents, across a range of markets and time frames. We have formulated processes designed to capture the upside volatility can offer, as well as the downside protection it affords.
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flow yield
WHAT'S IN YOUR PORTFOLIO?
At S SQUARED ADVISORS, we are dedicated to efficiently allocating our investors capital. In our research paper "What's in Your Portfolio and at What Cost?" we examined what we believe to be the relevant valuation factors investors need to consider for efficiency, profitability, valuation, and most importantly, margin of safety, along with their average values for S&P 500 Index, a sample value portfolio, and our own US Large Cap Minimum Variance Value Portfolio (MVVP). We have provided a table from the paper below. We invite you to send tickers and quantities of the stocks, ETFs, and mutual funds in your portfolio. We will generate a scorecard for your current portfolio so you can see how you compare to our MVVP strategies. We have yet to see a diversified portfolio maintain the level of exposure to value/quality factors as our MVVP portfolios. For more information regarding our methodology, please request a copy of the paper in our research section or feel free to contact us.
strategies
Our core strategies were designed out of our desire to systematically maintain exposure to the most robust and fundamentally sound companies, in an approach we can implement consistently regardless of market conditions. Our strategies offer peace of mind for our clients that are transparent and backed by extensive academic and practitioner analysis and experience. Our sophisticated and simple methodology can be applied to any broad market index. We can customize strategies to align with your investment objectives and hedging preferences while ensuring your portfolio maintains optimal volatility and fundamental value exposures to our factors.
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- Separately Managed Account Structure
- No Leverage
- Management Fee 1.5% per annum
- No Performance Fee
- Separately Managed Account Structure
- No Leverage
- Management Fee 1.5% per annum
- No Performance Fee
- Separately Managed Account Structure
- 2x Leverage with Dynamic Hedge
- Management Fee 1.5% per annum
- 20% Performance Fee
- Separately Managed Account Structure
- No Leverage
- Management Fee 1.5% per annum
- No Performance Fee
- Separately Managed Account Structure
- No Leverage
- Management Fee 1.5% per annum
- No Performance Fee
- Separately Managed Account Structure
- Partial Leverage via Allocation to Portfolio Stabilizer
- Blended Management Fee from .75% - 1.5% per annum
- Partial 20% Performance Fee via Allocation to Portfolio Stabilizer
- Separately Managed Account Structure
- No Leverage
- Management Fee 1.5% per annum
- No Performance Fee
- Separately Managed Account Structure
- No Leverage
- Management Fee 1.5% per annum
- No Performance Fee
- Separately Managed Account Structure
- 2x Leverage with Dynamic Hedge
- Management Fee 1.5% per annum
- 20% Performance Fee
- Separately Managed Account Structure
- No Leverage
- Management Fee 1.5% per annum
- No Performance Fee
- Separately Managed Account Structure
- No Leverage
- Management Fee 1.5% per annum
- No Performance Fee
- Separately Managed Account Structure
- Partial Leverage via Allocation to Portfolio Stabilizer
- Blended Management Fee from .75% - 1.5% per annum
- Partial 20% Performance Fee via Allocation to Portfolio Stabilizer
meet the new stewards of your capital
Our strategies were developed using decades of collective knowledge of the management team’s global volatility landscape expertise and its experience in fundamental valuation analytics. Both co-founders have years of experience employing volatility-based strategies to achieve long-term success for their investors.
Michael J. Heffernan, CFA, CMT was recently Co-Founder and Managing Principal of Kappa Asset Management with Dr. Angelo, having built and run the firm since inception in 2012. Mr. Heffernan has over 20 years of experience in investment management and...Michael J. Heffernan, CFA was recently Co-Founder and Managing Principal of Kappa Asset Management with Dr. Angelo, having built and run the firm since inception in 2012. Mr. Heffernan has over 17 years of experience in investment management and...
RESEARCH PAPERS
Over the years, we have written and disseminated research papers to inform our current and prospective investors regarding developments in the volatility and value landscapes we think are important and timely based on market conditions. Below are links to request our research papers along with their abstracts. We welcome you to request a copy.
