Riskalyze GPA Investment Portfolio

Does Your Investment Portfolio Have a GPA of 4.0 . . . or 1.5?

Sure, your kids may have 4.0 GPAs at school, but what about your investment portfolio?

What is Riskalyze GPA™?

At Orion, we use the latest financial technology to measure and rank the efficiency of investment portfolios. This methodology, Riskalyze GPA™, analyzes the hard numbers of how much return a portfolio has generated versus how much risk (volatility) it incurred to generate those returns. It then produces a GPA for the portfolio, from a low of 1.0 to a high of 4.3.  Just like in school, the higher the better.

An efficient portfolio delivers more investment return per unit of risk than an inefficient portfolio. Typically, these portfolios have a GPA of 3.5 or higher. Just as shoppers seek the biggest bang for the buck when buying something, investors should seek the biggest bang (of returns), for the amount of risk they are taking.

Riskalyze GPA investment portfolio

In our view, all investors should:

  1. Determine their own personal investing comfort zone, and
  2. Invest in the most efficient portfolio possible within that comfort zone.

It is vital to know your own personal investment risk tolerance so you do not end up with a portfolio that is too volatile for your taste and that ends up compelling you to make damaging, emotionally-driven investing decisions. If your portfolio is invested in line with your risk tolerance, you can be comfortable during the inevitable fluctuations in the markets while still staying productively invested.

How Can You Find Your GPA?

Finding your own investing comfort zone is quick and easy. We use state-of-the-art risk assessment technology to determine, on a scale of 1 to 99, an investor’s Risk Number®.  The higher the number, the higher the risk tolerance. You can find out your personal Risk Risk Number® by taking this short questionnaire.

Once our client’s Risk Number® is established, we seek to construct a portfolio for that client that is poised to deliver the maximum return for the level of risk with which the client is comfortable. For example, if a client’s Risk Number® is 65, we then seek to develop a portfolio that meets our client’s investment objectives while earning a portfolio GPA of at least 3.5.

We invite you to give it a try and find your Risk Number® here. As a courtesy, if you complete your questionnaire to determine your personal Risk Number®, we will analyze your current portfolio and determine its GPA to see if you are investing appropriately for your actual risk tolerance and if your portfolio is delivering too much risk and not enough return.

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Peter Thoms, CFA, MBA

Peter Thoms, CFA, MBA

Peter Thoms, CFA, founded Orion Capital Management LLC in April 2002. Peter has extensive experience managing investment portfolios for clients pursuing a wide range of financial goals.

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