We know investors care deeply about protecting the capital they have worked hard to accumulate.  And as investors approach and enter retirement, managing “sequence risk” becomes even more important.

So while most firms focus on alpha (i.e. generating excess returns), our first focus is on risk: we seek to improve risk-adjusted returns by prioritizing downside risk (“drawdown”) management.

We believe in quantitatively-driven investment approaches, powered by the evidence-based insights of consistent, thoughtful research.  We focus on the application of value, momentum, carry, defensive, and trend in tactical asset allocation.

We believe process consistency is paramount for long-term investment success and is best achieved through systematic approaches which help mitigate the behavioral biases that often lead to poor investment decisions.

We adhere to a philosophy of quantitative integrity, whereby an idea must not only be supported by empirical data, but must also be grounded in sound theory.

Corey Hoffstein, co-founder & CIO

Simple by Design

We believe in embracing simplicity over complexity.  Our research shows that simple processes are more robust to uncertainty than complicated ones – an important factor in delivering consistent and repeatable results.

A Consistent Process

We believe in using a systematic, rules-based, and disciplined approach to ensure consistency in process and help eliminate the cognitive biases that, when repeated over time, can compound and create negative investment results.

Thoughtfully Designed

We believe that it is in the rules that turn investment signals into portfolio allocations that the objective may be met and we may strive to manage risk.

Portfolio Craftsmanship

At Newfound, we believe that portfolio construction has two separate and distinct elements: the investment signals we generate and the rules that compose these signals into portfolio allocations.

We liken this to cooking, where the investment signals are ingredients and our portfolio rules are a recipe. And just like cooking, we believe excellence is required in both areas: a great meal can be ruined by subpar ingredients, just as great ingredients cannot save a horrible recipe.

While most quantitative research focuses only on the trading signals, by utilizing a bifurcated framework we ensure that our research is balanced, recognizing that the rules are often where a portfolio’s objective is defined and prudent risk management techniques are applied.

Investing shouldn’t be complicated, but that doesn’t mean it is easy.  Emotional decisions can derail even the best laid investment plan.  Therefore, we believe the optimal investment plan is, first and foremost, the one we can stick with.

We know investors care deeply about protecting the capital they have worked hard to accumulate, so we seek to improve risk-adjusted returns by prioritizing downside risk (drawdown) management.

In the real world, short-term emotional decisions can threaten even the best-scripted financial plan.  We believe that managing anxiety is paramount for long-term investment success.

Justin Sibears, Portfolio Manager

Re-Defining Risk

Classical modern portfolio theory says investors are risk averse and measures risk as volatility. Evidence suggests that that investors are actually loss averse, and therefore drawdown is a more appropriate measure.

The Journey

While traditional portfolio construction focuses on end objectives, our portfolios seek to manage the quality of the journey along the way, recognizing that the optimal investment portfolio is, first and foremost, the one the investor can stick with.


We believe that many established market anomalies – such as the value, momentum, trend, and anti-beta premia – are linked to behavioral biases exhibited by investors.

Ready to rethink how you manage risk in your portfolio?

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