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:

Many investors believe, in theory, that asset classes are diversified. In practice, they have overlapping risks and are often less diversified than one might think. At Venn by Two Sigma, we believe that independent risk factors spanning across asset classes are more precise tools for investment analysis, helping to better understand portfolio diversification and the impact of decision making.

In this update, we will revisit our original intentions for creating the Two Sigma Factor Lens, and also explore the expansions we have made in the years since.

Our colleagues on the Two Sigma Portfolio Management team analyze the historical relationship of equity sectors and style factors with inflation.

In a recent Street View, our colleagues on the Two Sigma Portfolio Management team analyze both historical and forward-looking U.S. inflation forecasts.

Advanced data analytics our Two Sigma Portfolio Management team to offer a data-driving approach to modeling market regimes.

Venn highlights an approach to capturing Crowding as a factor in the Two Sigma Factor Lens and explores why this factor has evidenced a positive long-term return and notable explanatory power for hedge fund performance.

Read the latest from Two Sigma Research on how construction of the Low Risk factor can impact its performance.

Read the latest from Two Sigma Research on what the global market portfolio can tell us about forward-looking asset class returns.