New Diversification Science Beats All Other Portfolio Weighting Approaches

DENVER, Dec. 16, 2014 /PRNewswire/ -- Gravity Capital Partners, LLC, a technology-based registered investment advisory firm and the premier provider of diversification optimization, visualization and measurement technologies and strategies serving the investment industry, announced today its contribution to the commemorative Legends of Indexing issue of the Journal of Indexes, published by ETF.com.

Photo - http://photos.prnewswire.com/prnh/20141215/164403
Photo - http://photos.prnewswire.com/prnh/20141215/164404

The feature article, "Diversification Weighting® Performance Analysis" details an exhaustive investigation into Gravity's alternative, process-driven methodology for index construction and portfolio optimization called Diversification Weighting®.

The article starts out with Gravity defining portfolio diversification measurement and optimization. The company then applies their proprietary diversification optimization process to reconstitute the S&P 500 for the period January 1996 to May 2014. The result is a net annual return of 12.40-percent. During this same time period, Gravity's reconstituted S&P 500, named the Diversification Weighted® 500, outperforms the capitalization-weighted benchmark by 427 basis points. Moreover, Gravity demonstrates material and consistent outperformance against all other weighting approaches without increasing risk. On average, their Diversification Weighted 500 produced 6.52-percent of alpha every year for over 18 years; all while investing in the same 500 stocks as the S&P 500.

"We are beginning to unlock the secrets of portfolio diversification, and with this knowledge are able to build software and strategies to fully harvest Diversification Alpha. This unique source of alpha embodies diversification's risk-mitigating benefits, while at the same time captures a lesser-known diversification-based performance ratchet that adds to the overall return," says article co-author James Damschroder, Gravity's chief portfolio architect & strategist. "Based on our study, investors must conclude that Diversification Optimization is a better way to weigh a financial portfolio. The demonstrated consistency, risk mitigation and higher returns that portfolio diversification provides, presents a strong case for institutional adoption of our Diversification Weighting strategies," adds Gravity CEO John Osland.

The Diversification Weighted 500 and other Diversification Weighting strategies offered exclusively by Gravity Capital Partners are available as managed accounts. Contact us today at (970) 472-8489 to learn more about our Diversification Weighting solutions and the emerging science of diversification.

About Gravity:
Gravity Capital Partners, LLC – The Robo Advisor for Advisors and Global Leader in True Diversification®, is a technology-based Registered Investment Advisor (RIA) located in Denver, CO. They are the sole provider of Diversification Weighted strategies serving the financial advisory industry. Their patented inventions for diversification optimization, visualization and measurement combine with a 15-year legacy of technology development and leading edge, alpha generating, research-driven techniques built into their Gsphere.net Robo Advisor platform. Gsphere technology powers their strategies and enables amazing collaborations with advisory firms to systematize, optimize and automate their strategies, managed by Gravity on a custom outsource basis. Gravity works with wealth managers and institutional investors as strategic sub advisors to create diversification overlays, Diversification Weighted product sleeves and evangelize the knowledge of diversification.

Media Contact: 
Louis Horkan
Email 
813-494-8498

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/new-diversification-science-beats-all-other-portfolio-weighting-approaches-300009984.html

SOURCE Gravity Capital Partners, LLC

Related Links

http://www.gravityinvestments.com