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Quantitative Analysis

Multi-Factor Investment Model

ClientFamily Office
IndustryWealth Management
Duration6 months
Team2 engineers
4.5%
Excess Returns
Annual alpha over benchmark
0.85
Sharpe Ratio
Risk-adjusted performance measure
15%
Lower Drawdown
Reduced maximum drawdown

The Challenge

A family office wanted a systematic approach to equity allocation that combined fundamental analysis with quantitative rigor, reducing behavioral biases in investment decisions.

Our Solution

Built a multi-factor model incorporating value, momentum, quality, and low volatility factors with dynamic weighting. Implemented portfolio optimization using mean-variance and risk parity approaches.

Our Approach

1

Researched and tested factor definitions for Indian market context

2

Built factor scoring system with normalization and winsorization

3

Implemented portfolio optimization with transaction cost consideration

4

Created rebalancing framework with tax-loss harvesting

5

Developed performance attribution by factor exposure

Technology Stack

PythonNumPySciPyQuantLibReact

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