Math + History + Finance = DataDriven Process™

Developed in an effort to reduce a portfolio's risk, the DataDriven Process™ has evolved into a mathematical system that we utilize to lower volatility. Using math, history and finance, our process can lower your portfolio's volatility, improve your odds of survival and allow us to make more informed choices.

We start with market cap on the equity side.

The large blue section is the U.S. stock market, encompassing 38%* of global market cap.

*Percentages are not current.

We adjust market cap weightings.

We overweight cheap countries and underweight expensive ones, using both Shiller PE and Market Cap to GDP in the valuation process. These two metrics have had historically high correlations to forward looking returns. 

See chart at left: as valuation increases (x axis), future returns decrease (y axis).

Shiller PE has had over 90% correlation to forward returns for the U.S. stock market. As of early 2018, the data implied very low future returns. Our DataDriven Process™ incorporates the data, resulting in an underweight of the U.S. market. 

We increase or decrease country specific weightings.

Incorporating size and valuation through our process results in lowering the weighting in U.S. equities by 40%*.

*Percentages are not current.

By using current data we eliminate the need to predict the future.

We incorporate market cap size and valuation, global GDP, country specific debt burden, currency size and valuation, and asset class correlation, among other factors.

Reduce risk. No bias. The U.S. is a minority.

Global GDP

U.S. GDP = 25% 


Global Market Cap

U.S. MARKET CAP = 37% 



U.S. ASSETS = 15% 

OTHER = 85%

Betavisor is the diversifier.

Typical Wall Street Portfolio

Wall Street tends to succumb to the investing flaw called home bias, increasing portfolio risk without increasing expected return.  

Betavisor Portfolio

Using my DataDriven Process™, I take a global approach to portfolio construction, maximizing diversification in an effort to reduce risk.