Be Market Aware

Design an investment strategy that adapts to changing market conditions. Proactively capture your sources of return.

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Focus On Your Alpha

Omega Point's AI-based Market Aware™ engine unlocks portfolio performance with unique insights that help capture the sources of your strategy's performance and reduce external noise from the markets.

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Eliminate Factor Drawdowns

Identify the most critical factors driving your portfolio risk and manage their impact to your strategy.

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Discover What’s Driving Your P&L

Our Market Aware algorithms help uncover even the most subtle shifts in market trends to help isolate the value drivers of your portfolio.

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Modern Portfolio Intelligence

Omega Point's easy-to-use web-based analytics platform is a one-stop strategy analysis dashboard that provides managers with an in-depth view of the factors that are driving their portfolio's performance.

Our comprehensive factor model library, with coverage of 70,000+ securities, allows you to quickly build a multi-dimensional view of your portfolio’s exposure in real-time to market factors across styles, sectors, regions, and asset classes.

AI-driven market detection patterns are seamlessly integrated with your own, unique investment style. On average, Omega Point has helped reduce portfolio factor risk by 30% and increased overall returns by 14%.

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Developer Platform

Omega Point's Developer Platform allows you to pull our data and factor analytics directly into your internal systems, applications and most third-party platforms.

When used with Omega Point’s powerful application workflows through Portfolio Intelligence, the result is an organizational win-win that enables closer ties between PM’s, development teams and the middle/back office.

All managers, whether passive or active, can take advantage of AI-driven quantitative insights without sacrificing their own unique investment style.

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Use Cases

Global Multi-Strategy Asset Manager

CIO, Global Multi-Strategy Asset Manager
NEED Discover unintended risks across multiple portfolios.
GOAL Robust integration into the organization's strategy analysis workflow.
USE Directly integrate analytics into existing PM-facing systems.
RESULT Reduced risk, clear reporting. More efficient collaboration between PMs, analysts, and quant teams.

Global Systematic Quant Manager

Global Systematic Quant Manager
NEED Quickly evaluate new strategies for undesirable factor risks.
USE Simultaneously backtest multiple strategies and minimize risk imbalances.
RESULT Better strategies that preserve ideas, increase alpha.

Global Investment Bank

Product Team, Global Investment Bank
NEED Manage model portfolios serving both institutional and retail client base.
USE Leverage Omega Point across the full design-analyze-deploy-monitor lifecycle of each model portfolio.
RESULT Increased innovation and adaptiveness to client needs.

Sector-Focused Fundamental Manager

Sector-Focused Fundamental Manager
NEED Identify unintended factor risk.
USE Actively monitor any changes in factor risk and adjust factor hedges.
RESULT Implement more adaptive hedging strategies.

From Our Blog

The Takedown of Megacap Tech in Benchmarks

Jun 13, 2021 8:00:00 AM

Before we jump into this week’s conclusion to our three-part beta series, I want to briefly veer back to an earlier topic I had covered during our recent macro series, which generated many positive comments and feedback from our readers. For those of you who would like to continue your macro explorations, I will be co-presenting at a joint webinar with Qontigo on June 23 alongside Qontigo’s Melissa Brown titled: Macro Matters, Even for Fundamental ManagersWe anticipate a timely, deep-dive discussion with extensive Q&A, and I hope to see many of you there.

Our recent issues of Factor Spotlight have centered on the deteriorating efficacy of beta as a measure of market risk. One possible culprit is the increasing concentration in market-cap-weighted universes that represent key ingredients when deriving beta. The evidence showed a downward trend in the correlation of beta to the market that coincides very closely with market cap concentration. The charts below illustrate that as beta has decoupled from the market, the effective number of assets (our measure of concentration) has decreased as well, signaling that we may be able to tie increased market concentration to beta’s breakdown.

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Is Concentration Driving Beta Mad?

Jun 6, 2021 8:00:00 AM

In our last Factor Spotlight, we delved into the recent behavior of beta to understand why this measure has been less useful in helping investors hedge market risk. We highlighted the apparent de-coupling of beta from the general market based on the decreasing correlation of the Beta factor return to the Market factor return using US and global equity risk models from Axioma and MSCI Barra.

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Honey, I Shrunk the Beta

May 23, 2021 8:00:00 AM

Investors often look to good ol' beta as the tried and true mechanism for hedging market risk in their portfolios. However, many have noted that lately, beta feels “broken”.

Hedging beta no longer seems to have the desired effect of mitigating risk in portfolios, and in fact, investors who have tried to hedge beta in 2020 and 2021 will have found major headwinds as the beta factor took off on a wild ride in the post-COVID era.

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Momentum: One Size Does Not Fit All (Sectors)

May 16, 2021 8:00:00 AM

If you want to hedge momentum, just go short Info-Tech and long Energy, correct?

Actually, not so fast.

This strategy may have been somewhat effective in prior markets; however in today’s market, the efficacy of this type of hedging strategy has been rapidly unraveling.

We can see this clearly by looking at the Momentum exposure, using the Wolfe Research QES US Broad risk model of QQQ vs. XLE.

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Watch the Tails: Expanding our Macro Detection Palette

May 9, 2021 8:00:00 AM

Last week, we delved into ‘when’ macro matters by using the Axioma Macro Projection Model to identify historical periods when macro factors drove US equity volatility. This approach highlighted the Sovereign Debt Crisis in 2012 and the COVID market downturn as periods when macro factors became the leading contributors to volatility in the Russell 1000 Index. We also observed evidence of macro influence on performance during the COVID recovery period and uncovered Inflation as a critical rebound driver of equities in the past year.

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What People Are Saying

“Omega Point helps me make better trading decisions by providing critical market insights that support my core investment process.”

Dan Chai, Founder at Turret Capital Management

Turret Capital Management