A busy trading floor at Parametric

The Parametric Difference


Parametric has been providing engineered portfolio solutions to institutional and private clients for over a quarter of a century, with a sharp focus on implementation excellence and client-specific customization.

As Parametric’s capabilities have grown, so has our firm. In 2007, we added options-based strategies to our products and services. In 2012, we acquired The Clifton Group, an institutionally focused asset management firm that also traces its roots to the mid 1980’s as providers of highly customized solutions. And, in order to meet the needs of institutions in Australia, we established offices in Sydney in 2014.

Today, Parametric offers systematic alpha strategies that seek to outperform designated benchmarks on a risk-adjusted basis by applying systematic, rules-based asset class exposure. Our customized exposure management solutions use individual securities, exchange-traded funds, futures, options and other derivative instruments to construct and manage portfolios to assist clients in meeting their market exposure, risk management, tax management and return objectives.

Parametric At a Glance

Our Philosophy

How often does boring equal brilliant?

Can simple and straightforward equal success?

Parametric believes that implementation matters a great deal. Unchecked investment costs and volatility can erode growth. Portfolio construction and trading efficiency can make or break long-term investment success. Managing and understanding various kinds of risk is basic to all of our investment processes. Our observations and experience lead us to an investment approach we call engineered portfolio solutions. Parametric portfolio managers act as investment "engineers," creating portfolios with explicit risk and return targets and continually measuring and managing the impact of relevant costs. Our approaches are, at their roots, quantitative and rules-based. They evolve slowly as they don’t require repeated tactical insights into valuations or market direction.

We base this investment philosophy on some long-term observations:

Most capital markets are highly efficient. Outperforming them is difficult and often leads to increased risk and costs. Many investors rationally seek these higher returns, but caution is essential.

Risk control and diversification can help avoid painful surprises and ensure that an investment program is maintained during difficult periods.

Costs matter. They matter so much that they can mean the difference between success and failure. In particular, if the portfolio pays taxes, tax efficiency is paramount.

Prudent use of futures, swaps and options can help enhance returns and manage risk.