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MPI Awarded Patent for Innovative Frontier Map™ in Asset Allocation

26-May-2011 | Source : | Visits : 14185

SUMMIT, NJ - Markov Processes International (MPI), a leading financial technology and research firm, announced in a press release that it has been awarded a patent for its novel Frontier Map™ approach for visualizing investment portfolios (US patent number 7,890,406 “System and Method for Visualization of Results of Multi-Criteria Financial Optimizations”).

The patented method provides investment practitioners, including institutional investors, investment consultants, financial advisors and asset managers, with a unique way to project and graphically display results generated from asset allocation and portfolio optimizations.

“System and Method for Visualization of Results of Multi-Criteria Financial Optimizations”

MPI’s Frontier Map™ merges traditional efficient frontier and allocation area charts to allow for the intuitive structuring of assets in models by economic sectors, countries, regions, etc., in ways that can be easily displayed and interpreted, aiding communication and decision making. Asset allocation analysis has typically required investment professionals to use one or more distinct standard frontier and allocation charts. Such disparate presentation of results leads to difficult interpretation and communication of the distance between various investment options across an efficient frontier in the asset space, especially when large numbers of assets are involved. Conversely, with MPI’s Frontier Map™, practitioners can navigate across multiple frontiers to instantly evaluate a set of efficient portfolios across model types, including but not limited to Resampling, Black-Litterman or traditional Mean Variance.

The Frontier Map™ approach to visualization and analysis is particularly important in comparing multi-criteria financial optimizations, resampled frontiers and alternative market assumptions in a digestible way, and frees asset allocation professionals from the time and energy needed to glean such results from traditional line graphs or multiple allocation area charts. Thus, Frontier Map™ represents a new dimension in the analysis and decision support process for investment analysis and communications.

Michael Markov, CEO of MPI and co-inventor on the patent says, "Accurate visual communication is crucial to decision making and success in the investment process. Style maps and similar displays of trends in investment instrument behavior enjoy widespread use in the investment community. MPI’s patented approach brings, for the first time, the same level of clarity and intuition into the asset allocation and portfolio optimization space.”

Frontier Map™ is available in MPI Allocator, an asset allocation module within MPI’s flagship software product, Stylus Pro Suite. For more information and a short video, please visit this location:

Markov Processes International, LLC (MPI) is a global provider of investment research and technology solutions. MPI’s software applications and customized consulting services are employed by the finest institutions and financial services organizations to enhance their investment research, reporting, data integration and content distribution. MPI offers the most advanced platform available to analyze hedge funds, mutual funds, portfolios and other investment products, as well as asset allocation and portfolio optimization tools.

MPI’s Stylus Pro software is utilized by alternative research groups, hedge fund of funds, family offices, institutional investors, consultants, private banks, asset managers, diversified financial services organizations as well as marketing, product development and IT departments around the world. MPI also offers solutions for investment advisors and private wealth professional.


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