An agile and creative process without limitations – a way of thinking freely
Our identity – the epicenter from which all things come
Innovative ETF Solutions
Risk Managed Funds
Dynamic Beta Fund
What We Do
We are quants. Passion for quantitative analysis is what brought our team together. Blue Sky was founded on research and development of new ideas on products with practical application.
We launched a series of ETFs in January of 2017 focused on two areas:
Dynamic Beta ETF:
Designed to create smarter risk exposure relative to their benchmarks. Security selection and portfolio beta are optimized in order to maximize upside versus downside capture resulting in a more appealing asymmetric return profile for investors.
Risk Managed ETFs:
Designed to provide asset class exposure in order to manage downside risk. Asset class selection and cash/fixed income exposure are optimized in order to attempt to manage downside risk.
Our indices are designed to reflect innovative quantitative strategies for gaining exposure to new sources of alpha, and unique solutions for risk management. We currently create and maintain the QuantX Indices that our passive ETFs mirror. These indices are then maintained by Solactive, one of our partner index providers.
Separate Account Manager
We launched Blue Sky in 2013 to provide separate account solutions to institutions and advisors and their clients. Our flagship Dynamic Asset Allocation Strategies broadly seek to enhance risk-adjusted returns in all market conditions by over-weighting risk assets in periods of market strength, and over-weighting defensive assets in periods of market weakness.
“When events change, I change my mind. What do you do?”
— Paul Samuelson – Nobel Prize Winner and father of dynamic asset allocation
All investment strategies are based upon a set of assumptions or historical research including buy and hold. Economic regimes constantly change; interest rates, inflation and equity markets can move substantially up or down and significantly impact portfolio returns. Unlike endowments, investors do not have an infinite time horizon. For this reason we believe that a traditional strategic asset allocation approach based on modern portfolio theory is suboptimal. It makes more sense to adapt to changes in the economic environment. We favor a dynamic approach to asset allocation using market information to guide our investment decisions. Most importantly, we believe that a systematic, quantitative approach is necessary to avoid emotions and biases in decision-making.
We believe that an ongoing commitment to research is the foundation of our investment philosophy. It is the key to uncovering new and actionable information that can be used to further enhance existing models and to develop new strategies.
The Snowflake - Simple Yet Elegantly Complex
“Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.”
— Steve Jobs – former CEO of Apple
The snowflake is a wonder of nature, appearing so simple and yet it is deceptively complex. Its unique shape is determined by the specific path it follows when falling through the sky. No two are the same, and the number of possible different shapes is infinite. The symmetry of the snowflake has proven influential in the field of mathematics and fractal geometry.
Similar to the snowflake, we believe that solutions to complex investment challenges should be simple to understand and intuitive. They should be founded upon thoughtfully researched principles that are timeless and enduring.
New Whitepaper: Macro Risk Indicator
Macro Risk Indicator: Our Approach to Managing Risk We are commonly asked about the method we use to tilt our