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Tilting the Index In Your Favor

Tilting the Index In Your Favor

In 2022, Blueprint Investment Partners rolled out one of the largest enhancements to our investment process since inception. Specifically, we wanted to start utilizing individual stocks in our portfolios instead of a basket or index. This shift was born of a simple question:

If trend following the index is a highly effective approach, would it be more effective to break apart the index and apply this same method to its underlying constituents?

Tilting the Index In Your Favor

Author: Jon Robinson
Category: Systematic Investing
Man sitting on palm tree trunk growing out over water Bar chart showing 2020 distribution of returns for SPY

Tilting the Index In Your Favor

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In investing, the distinction between prediction and reaction helps separate discretionary technical analysis from systematic trend following. In “Seinfeld” lore, it’s also what distinguishes a man who chases schemes and hastily launches consumer products like the manssiere from one who stays disciplined to a single profession and adapts based on what is making audiences laugh right now.
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