Mathematical Finance & Financial Data Science Seminar

4x4 Asset Allocation

Speaker: Max Golts, Chief Investment Officer at 4x4invest

Location: Online Zoom access provided to registrants

Date: Tuesday, April 5, 2022, 5:30 p.m.


We propose the following structured approach to asset allocation: all assets and liabilities in any
portfolio should be thought of as means contributing to the following four ends:

  • Liquidity maintenance: nominally safe and quickly accessible “cash-like” pool of assets,
  • Income generation: relatively regular, certain and near-term cash payments,
  • Preservation of (real) capital: assets expected to retain their value over time,
  • Growth: more volatile assets and strategies expected to generate future cash payments.

We believe that all 4 areas should be “powered,” giving our approach its 4×4 name. Further, we
suggest that investors should start their asset allocation process by explicitly setting a strategic
investment horizon over which they seek to achieve their goals, and building strategic 4×4
portfolios. Investment portfolios should then be rebalanced with some regular tactical frequency
in order to re-align with the strategic investment horizon goals, while also managing tactical risk,
return, and cash flows.


Max Golts, PhD, is the chief investment officer at 4x4invest. Previously, he was a portfolio
manager at Acadian Asset Management, a strategist at SSGA and Fidelity Investments, and a
senior research analyst at GMO. He holds a PhD in mathematics from Yale University.



 Please click here for the pdf copy of the presentation