By Efi Pylarinou

Looking for a quant edge in your investing strategies? Logical-Invest already has 8 off-the-shelf strategies that you can “grab” and use. Logical-Invest is not an investment advisor and will not manage your money.

They provide you with 100% actionable advise.

You can pick a monthly subscription or an annual subscription to one of their core strategies and pay less than 3 shares of Apple (for the year).

Logical-Invest was founded by four partners that bring a lot of experience in financial markets, quantitative fields (engineering), and business. They started by introducing a sharing platform of their own strategies for investing. Logical-Invest sprung out of this, less than six months ago. The team is putting their money where their mouth is.

Take their flagship product UIS, Universal Investment Strategy, that is an effective method of a dynamic rotation strategy. It implements an adaptive mechanism of switching between the S&P 500 (NYSEARCA:SPY) and long duration Treasuries (NYSEARCA:TLT). Frank Grossmann, one of the founders, explains in an article in SeekingAlpha how it works.

Without diving in to the rules and back testing of this quantitative strategy, UIS provides a low cost optimization investment strategy. It is even more attractive as an investment method because we are in an environment that offers extremely low rates and is prone to high volatility.

Logical-Invest wants to offer us tools that can be used in several ways. The evident way is to copy a strategy (copy in the layman sense). Other ways are based on using the signals produced by the strategy to fine-tune our existing holdings.

Financial advisors are natural users of such tools and they typically, subscribe to all the Logical-Invest products. Retail investors are also using the single strategies because they are relatively simple and fit in every portfolio. Quantopian users have “copied” some of their strategies.

Quantopian (profiled in a previous post) is also

targeting the largely “under-represented” quantitative strategies sub-sector

but in a different way. It aims to create a community of quant users that are collaborating towards true alpha generation, especially in US single equities. It is investing heavily in data acquisition and open-source back testing capabilities of quant strategies. It is in the process of launching a crowd-funded hedge fund from selective quant strategies.

Logical-Invest, is also “swimming” in the “Sharing” lagoon waters, but isn’t crowdsourcing the quant strategies. Their alpha generation comes from within the company, from dynamically adapting and broadening their products and more importantly, from their ability to offer customized advisory solutions. Their products are simpler and user-friendlier for retail investors. One can also use their simple and clean advise on a portfolio allocation using Logical-Invest ’s 7 products (summarized below). After subscribing, the user receives a monthly newsletter with the buy and sells signals of the strategies that will are actionable investment guides. Execution based on the advice is done through each user’s broker.

Logical-Invest product offering:

Universal Investment Strategy: The core of all rotation strategies, switches between the S&P 500 (SPY) and long duration Treasuries (TLT). 

Global Market Rotation: The strategy invests monthly in one of the 5 major world markets: US market, Emerging markets, Europe, Latin America and Pacific Region. During market corrections it invests in US Treasury bonds or cash.

Global Market Rotation Enhanced Strategy: The strategy invests monthly in one of 5 major world markets similar to the Global market rotation or in US inverse volatility.

Global Sector Rotation: A diversifying strategy invests on a monthly basis in the top two performing global sectors.

Maximum Yield: A strategy invests on a semi-monthly basis in US Treasury bonds and US inverse Volatility. 

Bond Rotation “Sleep Well” Strategy: A conservative strategy that invests on a monthly basis in two of five different bonds.

The Bug Investment Strategy: An “All weather” strategy that allocates across the basic four assets, Stocks, Bonds, Gold and cash as well as three additional ones: Convertible Bonds, TIPS and Foreign Bonds.