The How, What, and Why of VP's Asset Allocation Engine - September Asset Allocation Call [video + AI summary]

Speakers: Tian Yang (Head of Research) and Scott Freeman (Director of Asset Allocation)

There are 2 key decisions to get right for asset allocation:

• How much to allocate to risk assets (stock vs. bond vs. cash allocation).
• How to gain exposure to outperforming sectors while avoiding underperforming ones.

We address these two problems in a repeatable way, using the best frameworks we have developed over the 15 year history of Variant Perception.

• Our leading indicators help us understand the business cycle.
• Our capital cycle models help us understand long-term profitability trends across industries.
• Our crowding indicators help us understand market positioning and herding behavior.

These 3 key models can be synthesized into modular and customizable portfolios that:

• Maximize upside capture & minimize downside capture vs. standard benchmarks.
• Do NOT take undue risk with leverage or hero calls.
• Have reasonable trading turnover.