James founded Gravity Investments in 2000 at the age of 26. His inventions for diversification measurement, optimization, search and visualizations form the core of Gsphere, used to help about 100 clients, such as investments managers, registered investment advisors, hedge funds, allocators and fund consultants manage or advise over twenty billion dollars. This experience allowed James to architect and engineer dozens of investment processes used by diverse clients. It is James’s vision to build technology to enable the combination of the best ideas and methodologies of our clients, or other proven strategies with our best practices in essential but overlooked dimensions of any investment process, all rooted in True Diversification®. James has developed unique skills for investment managers or even financial engineers, having expertise in quantitative finance, genetic algorithms, econometrics, database design, computational geometry, data visualization and modeling, intellectual property and strategy. Prior to forming Gravity Investments, he was a floor broker at the Chicago Mercantile Exchange, a systems program trader and an investment advisor.

Rebalance Versus Reoptimization

Everyone uses the word rebalance.  I am done with it.  Re-optimization fully dominates rebalancing. Let’s define a rebalancing action as a portfolio reallocation process where an investor  recenters a portfolio back to its target allocation.  The theory here in that one avoids chasing the hot assets and helps to systematically buy low and sell high. …

Optimal IPC Targets

I am often asked what value should I target in the IPC’s.  Is a value of 60% really better than a value of 50%?  Here is my latest thinking;  Reducing the amount of systemic exposure is indeed critical to reducing the risk experience of a portfolio. there seems to be an exponential utility decay function…