SmartSkor: Forward-Looking Equity Ranking
SmartSkor is our primary equity-ranking framework. It periodically analyzes 100+ factors spanning value, momentum, profitability, attention, fundamental momentum, and investment categories.
The resulting composite SmartSkor forecasts the risk-adjusted performance ranking of a security over the next month. The SmartSkor framework is best utilized through model portfolios rather than concentrated bets on few securities.
The resulting composite SmartSkor forecasts the risk-adjusted performance ranking of a security over the next month. The SmartSkor framework is best utilized through model portfolios rather than concentrated bets on few securities.
How does SmartSkor help?
SmartSkor combines multiple factors, each capturing a different source of market inefficiency
No single factor works all the time. Combining them creates a more reliable signal
More predictable stocks
Optimally investing firms
Beyond conventional metrics
Firms on a steady uptrend
Strong fundamentals
Not hyped
Undervalued companies
Better Stock Selection
Reduced Biases
Better Performance
SmartSkor Methodology
Our systematic security analysis approach has four stages
01
Test the efficiency of existing cross-sectional characteristics
Replicate decades of financial economics research and backtest the economic and statistical significance of firm characteristics and their ability to predict future stock performance.
02
Conduct original research to identify new firm characteristics
Use economic theory and original hypotheses to identify new firm characteristics that improve return predictability. Backtest the efficacy of these new characteristics in the presence of existing ones.
03
Create model portfolios using SmartSkors
Construct model portfolios based on different risk, investment and industry preferences using firms with the highest SmartSkor values, i.e., values of 10.
04
Rebalance portfolios on a periodic basis
Firm level SmartSkors change in regular, pre-scheduled intervals. This is reflected in the composition of model portfolios as firms with lower SmartSkors are replaced by firms with higher SmartSkors periodically in each model portfolio.
Benefits
SmartSkor’s design deliberately penalizes variables associated with mispricing and sentiment
High volatility, idiosyncratic distress, or excessive retail attention reduce the composite, while profitability, transparency, and disciplined investment increase it.
The result is an ex-ante ranking of securities by expected return, rooted in evidence and invariant to market narrative.
SmartFundSkor
SmartFundSkor: Bottom-Up Fund Evaluation
SmartFundSkor extends the same logic to the portfolio level
For each equity fund, the system computes a holdings-weighted average of underlying SmartSkors, adjusted for turnover and concentration. The score reflects the expected risk-adjusted performance of the fund’s current positions, not its historical returns.
In addition, we provide investors with over a dozen professionally designed model portfolios that help them capture the full power of SmartSkor according to their individual investment preferences, risk tolerance, and portfolio objectives.
In addition, we provide investors with over a dozen professionally designed model portfolios that help them capture the full power of SmartSkor according to their individual investment preferences, risk tolerance, and portfolio objectives.
Turn insights into profitable investment decisions with SmartSkor
Move beyond historical rankings, invest based on the forward-looking
quality of publicly traded equities.
value
attention
momentum
fundamental
momentum
momentum
investments
profitability