Z22 Smart Mirror
Smart Mirror, at its core, is an intelligent long US equity portfolio with a systematic and momentum based volatility overlay. It allows for full upside participation in bull markets while also providing profit opportunities during market corrections. It's optimal for the bullish investor that is still slightly worried about the current high valuations in equity markets.
The equity exposure is managed by a self-improving artificial intelligence algorithm screening SEC filings. The algorithm is looking for statistically significant features that determine successful asset managers with a high probability of outperforming their peers and benchmarks during the subsequent quarters. The high conviction stock picks of the best managers are aggregated and bought directly. There are no direct investments in the selected managers due to liquidity and cost reasons.
The result of this selection process is a highly diversified US equity portfolio of 50 to 150 titles.
At all times, the algorithm is also screening the volatility market looking for signals of increasing price and volumes. If a signal is confirmed, the algorithm takes a strategic position in a long volatility ETF (VXX, VIXY) applying our extremely rigorous position management. Profits and losses generated on this position will be rebalanced into the equity part of the portfolio, leading to an overall lower portfolio volatility and significant market outperformance during market crises.