Trendrating: Maximizing investment performance

November 10, 2015 11:46 AM

Tell us a bit about your company and what it does.

Trendrating was created to provide better tools to maximize investment performance and improve risk control. We bring additional intelligence and measurable value to the existing decision processes. Superior performance and financial success come from discipline and a systematic reality check of assumptions.

Bias, emotions, market noise and overconfidence may severely limit a manger's ability to perform. Momentum factor analytics are the answer. The value of our service is not hidden behind theories and hypothesis; the performance of our ratings is fully transparent.

How is it different than other companies in the same space?

Our technology team spent five years in research & development to improve upon the two most common types of Momentum Factor Models used by professional investors  The first model type is typically based on 1 or 2 price related indicators such as Relative Strength or Pivot Points. These models can identify momentum quickly but don't fare well in volatile markets and are not geared towards portfolio investing.

The second model type needs a much longer period (6 months or so) to confirm a trend before participating. These models miss a decent portion of the run up and quite often are late to exit giving back profits. The Trendrating Smart Momentum Model is based on a multi-factor approach designed to identify trends early and adapt to market volatility to provide stability and greater profitability for long-term investors.

What is your revenue model? How will the company make money?

We have two revenue models. Firms creating Indices or ETFs license our model. Portfolio managers, investment advisors and wealth managers access our web-based platform on a monthly subscription basis.

Who is your target market? How big is the opportunity?

The industry can no longer ignore the importance of the Momentum Factor. We believe that in five years 50% of all asset managers globally will incorporate some form of momentum and Trendrating is poised to offer them the latest innovations.

Why are you and your team capable of succeeding?

Our management team is comprised of experienced portfolio managers, data scientists and Fintech sales & marketing veterans who have started companies which either went public or were acquired by major financial services firms.

What is your company’s next target/milestone?

We plan to launch a suite of different types of Momentum-based Indices early next year.

Can you tell us one unusual fact about your company? (ex. Where does the name come from? Are there any unusual mementos in the office?)

Our founders' previous company, Brainpower (search engine for structured equity data), was the first Fintech company acquired by Bloomberg in 2006. Tom Secunda, the co-founder of Bloomberg said, "That’s exactly what we would build, it’s brilliant so we bought them. I love companies that build, that are brilliant.“

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