Factor Spotlight
Factor University

Our Partnership with Axioma

A key driver in our mission to democratize quantitative investing is to simplify complexity for our traditional asset manager clients, and our recent announcement to partner with Axioma expands upon that by leaps and bounds.  As always, clients can discover, analyze and manage their portfolio factor risk using Omega Point’s intuitive visualization platform.  But by adding seamless one-stop access to Axioma’s extensive global factor data sets, more options now exist to boost portfolio performance irrespective of strategy.While Axioma data and research have been available primarily to quantitative traders, teams of analysts, data scientists and researchers were required to integrate these into customers’ proprietary models. With the new combined offering, we’ve done the heavy lifting!  Intermediaries are no longer necessary for portfolio managers to be able to access these deep, rich historical factor sets.  This enables PMs to more effectively focus on their alpha, avoid unexpected draw-downs and uncover the true drivers of their P&L.

“Quantamental-style” investing has been gathering much steam of late. As the founder of Omega Point, I was invited to teach a class on factors before a packed audience of asset managers at the L2Q (Learn 2 Quant) event in New York last Tuesday.  It became abundantly clear that many managers can’t examine their underlying factor risks more closely due to educational and resource constraints.  Not to mention the difficulty of performing the vast amounts of calculations needed to accurately measure portfolio factor exposure (big surprise: not many PMs are data scientists)!

Typically, fundamental managers are more attuned to measuring their beta to benchmark, as the data and returns are relatively easy to gather.  And while most financial websites display some form of beta to the major market index, detailed factor risk information is lacking.  Yet despite the widespread availability of proper resources, it is becoming increasingly mission critical for portfolio managers to understand their factor exposure to achieve better performance in the market today.

Through our partnership with Axioma — an undisputed expert in the field of risk factors — we have created an easy-to-use visualization platform that seamlessly integrates with existing workflows to demonstrate the factors driving a portfolio’s performance.

I am personally thrilled to share some screenshots of our platform that incorporate Axioma’s factor models:

Portfolio performance attribution


Stock level performance attribution


Portfolio risk metrics


What does this mean for customers using Axioma factor models?

Omega Point’s platform makes it intuitively simple for traditional portfolio managers to understand factor risk and improve their performance. We help PMs drill down to the drivers of their current and past factor risk, and rebalance the portfolio to reduce unwanted risk exposures.

What does this mean for Omega Point customers?

Omega Point’s factor offering is comprised of a U.S. domestic risk model that has a historical look back to 2012, making it ideal for U.S.-focused funds looking to manage factor risks.  However, customers that have international stock exposure or who require historical factor-risk data dating back to the early 1990s will benefit from the Axioma integration.

As a result of our product integration with Axioma’s risk factors, Omega Point has created what I believe to be the industry’s most powerful factor analysis platform. We are proud to introduce it to existing clients as well as customers new to both Axioma and Omega Point.  Please contact us to learn more.


Related Insights
See All Insights

What Forces Are Impacting Your Performance? Find Out Now...

Schedule a Call