ERS’s Robo Technology Enduring Portfolio™ Produces World-Class Results

What Is Robo-Technology?

The most common definition of investing robo-technology is an automated, algorithm-driven investment management service. Robo-advisors use algorithms and data analysis to create and manage a diversified portfolio of assets tailored to an individual’s risk tolerance, financial goals, and investment horizon, often with minimal human intervention.

What is ERS’s Robo-Technology™?

ERS has developed Robo-Technology™, a fully automated quantitative investing system. Over the past 24 years, it achieved an average annual return of ~21.3%, compared to ~7.0% for major indexes. ERS’s Robo-Technology™ provides objective, data-driven investment decisions, in contrast to subjective human stock picking. Its consistent performance showcases the potential for significantly higher returns than existing robo-advisors, passive investing programs or active investment management.

ERS’s Business Opportunity

Currently, there are $1.8 trillion in assets invested in robo-advisors. ERS believes there is a significant, un-met opportunity to serve millions of retail investors with our low-cost, full-automated robo-technology. To our knowledge, there are no robo-advisors that have consistently beaten the S&P 500 index. Moreover, we called a small sample of the largest institutional robo-advisors, but were unable to obtain any information about average returns from any of them.

Methodology of ERS’s Enduring Portfolio™ Backtest

Equity Risk Sciences’ backtest of the Enduring Portfolio™ spans 24 years, from December 31, 1999, to December 31, 2023. This extensive study highlights the accuracy and value of ERS’s proprietary data-driven computer systems methodology compared to traditional human methods.

Study Duration and Scope:
Time Span: 24 years, covering 6,044 trading days.
Universe of Stocks: Daily analysis of all US-headquartered stocks with:

  • Market cap between $100 million and $1 billion.
  • Revenue of at least $500 million.
  • Price of at least $1.00.

Average Number of Stocks Analyzed Per Day: 1,706.
Total Stocks Analyzed: 10,313,787 (1,706 stocks/day * 6,044 trading days).
Investment Criteria and Trades:

  • Selection Process: Stocks meeting ERS’s proprietary criteria.
  • Total Trades Executed*: 863 trades over 24 years.

Significance of Results

  • Fraction of Trades Bought to Stocks Analyzed: ERS’s model made 863 trades out of 10,313,787 stocks that were analyzed, only 0.008% of all the possible trades. The Enduring Portfolio’s™ superior results were solely the result of ERS’s proprietary ratings and model.
  • Outperformance Through Diligence: The Enduring Portfolio’s™ exceptional results underscore the importance of a disciplined, data-centric approach to achieve superior investment performance.

Conclusion

The backtest of ERS’s Enduring Portfolio™ demonstrates the power and precision of ERS’s proprietary data-driven investment analysis. By meticulously analyzing a vast universe of stocks over a significant period and executing a very selective number of trades, ERS’s methodology showcases its superiority in identifying valuable investment opportunities.

Enduring Portfolio™ Trade Performance Breakdown

The tables and charts below describe the average returns from the trades made in ERS’s Enduring Portfolio™ using ERS’s Robo-Technology™ and group those trades by the level of gain or loss they returned.

*Each “trade” is defined as a sequence that includes an initial buy transaction, a series of rebalancing transactions, and a final sell transaction, collectively counted as one “trade” for reporting and analysis purposes.

Group # of
Trades*		 % of
Trades		 Average
Gain/Loss		 Average
Hold Time
Trades with Gains 668 77.4% +34.2% 1.1 Years
Trades with Losses 192 22.2% -17.3% 1.2 Years
All Trades 863 22.6% 1.1 Years
Percentile
Group		 # of
Trades*		 % of
Trades		 Average
Return
Worst 1% 9 1% -62.4%
1% to 5% 35 4% -35.3%
5% to 15% 86 10% -15.4%
15% to 30% 129 15% -0.3%
30% to 70% 345 40% 16.9%
70% to 85% 129 15% 39.9%
85% to 95% 86 10% 66.8%
95% to 99% 35 4% 115.3%
Best 1% 9 1% 215.4%

ERS’s technology provides extraordinary results. Over 70% of Americans prefer passive investing to active investing. ERS has an excellent solution: ERS’s Enduring Portfolio™!

Statista estimates that robo-advisors manage $1.37 trillion and growing rapidly.
To serve this growing market, ERS developed the Enduring Portfolio™.

ERS’s fully-automated investing technology has produced world-class results, towering over every robo-advisor in the marketplace.

In 2024, we will turn a spotlight on the Enduring Portfolio™ and seek joint venture partners to monetize this extraordinary technology.