Venn forecasts can be customized with clients’ capital market assumptions as well as flexible lookback periods.

Private asset returns are typically smoothed and infrequent, reducing explainability and artificially lowering volatility. In this article, we discuss two steps to make your private assets returns look and feel more like their public market proxies.

In this piece, we get more specific on how we use a process called residualization to seek factor independence, an example of how it’s done, and our thoughts on applying it more broadly within the Two Sigma Factor Lens

It may be premature to expect capital allocators to have as deep an understanding of crypto managers as they do equities or fixed income. We believe familiar returns-based analysis can provide valuable insights when evaluating crypto managers.

We believe portfolio analytics in Venn should drive actionable asset allocation insights. In this piece, we take a deep dive into what actionability means to us and why it is one of Venn’s core pillars.

Going back to 2010, bitcoin’s rolling 1-year correlation with broad equities has often been negative. This led many capital allocators to think of long bitcoin exposure as an alternative. However, recently the relationship has changed and Venn’s Equity Factor might explain why.

There are many reasons why crypto can feel out of reach. One is access to high-quality crypto data. Given these challenges, a key question is: How are capital allocators expected to analyze crypto in the context of a larger portfolio?”

Venn by Two Sigma is holistic, meaning that our approach to portfolio analytics attempts to explain the large majority of investment return variation. But how much risk can confidently be explained with only a small set of independent risk factors? In this post, we analyze 5 representative institutional portfolios to see how holistic Venn’s Two Sigma Factor Lens has been.

At Venn by Two Sigma, we cut through the noise by analyzing portfolios with 18 factors that we believe are the most important and unique across the investment universe. The parsimonious nature of our factor lens, or the idea of identifying the most explanatory power with the fewest factors, is one of Venn’s four core pillars

As we aim to demystify digital assets for allocators, we are excited to launch a new content series, “Venn on Digital Assets.” First up, we provide a glimpse into capital allocation in crypto and offer a framework to better understand crypto risk management: