A solutions-based approach to asset management


About Newfound

Newfound Research designs and delivers quantitatively-enabled, tactical investment strategies. We balance a disciplined, research-driven approach with prudent strategy design to deliver intuitive, repeatable results. Newfound also partners with select asset management firms to collaboratively build investment solutions utilizing our tactical investment philosophy. Newfound’s strategies, whether direct or collaborative, strive to solve an identifiable investment problem and are distinguished by three qualities: a simple objective, a consistent process, and a thoughtful design.

What Makes Us Different?

At Newfound, we are working to cultivate an ecosystem of investment strategies that allow investors to meet their unique needs, redefining the concept of active management from one of relative benchmark performance to one of targeted outcomes. We embrace a managed risk philosophy, striving for robustness by constantly questioning assumptions, appreciating the enormous unpredictability and complexity of events, and expecting that the only certainty is uncertainty. This philosophy informs our conservative and thoughtful strategy design.

Our History

Newfound Research founded in August 2008 by Tom Rosedale, CEO, and Corey Hoffstein, CIO, to license data from its tactical investment algorithms. The firm’s models were researched and developed by Corey Hoffstein from 2007-2008. Originally developed to manage his own portfolio, Corey’s initial work focused on the application of momentum across domestic equity sectors as a risk management technique and included cash as a valid asset class. The use of momentum enables the model to be applicable across a broad range of asset classes and portfolio objectives.

For several years, Newfound licensed data from its proprietary momentum model to other asset management firms, providing the signals that helped drive their tactical asset allocation decisions. In 2011, Newfound began to take a more active hand in strategy construction. Instead of delivering the raw momentum signals to clients, we would work with select asset managers to integrate our signals with their existing investment process, creating custom-tailored, collaborative tactical solutions. These relationships have a unique objective and tailored methodology, creating a wide universe of complementary tactical strategies all powered by Newfound.

In late 2013, Newfound began researching and building proprietary investment strategies to directly serve the financial advisor and intermediary marketplace. We leveraged the experience from the prior five years of live data from our proprietary models and designing collaborative tactical models. The strategies were seeded in late 2013 and we began broad distribution of the strategies across multiple platforms (SMA, UMA, mutual fund, etc.) in 2014.

Our Story

Our Philosophy

The Signals

Newfound leverages its proprietary tactical models to generate signals on a variety of asset classes. How these signals change over time drives the tactical shifts taken within a portfolio. However, how those shifts are implemented is determined by the governing rules of the portfolio.

The Design

The rules of a portfolio take the raw signals and interpret them within the context of the overall investment objective of the strategy to ultimately create allocations. The rules are where strategy design is applied and where prudent risk controls can be embedded and enforced.

The Portfolio
(Ingredients + Recipe)

Bifurcating portfolio construction into the signals and the rules allows us to evaluate each process independently. This is similar to how a chef may view ingredients and a recipe: an extraordinary meal requires both quality ingredients and a good recipe; one is not sufficient without the other.

Annual Reports