FusionIQ™ is a financial information and technology company with a proprietary algorithm for scoring stocks and ETF’s in four dimensions, empowering professional traders, registered investment advisors, institutions and family offices with smarter analytics for smarter investing.
The idea behind FusionlQ was conceived over a decade ago after Kevin Lane, FusionIQ's founder who was featured as a member of Business Week's 2002 "Analysts Who get It" A-Team for his notable stock-picking acumen, had an idea: “What if investors acted only on objective information, only those data points that could be shown to matter, data that actually identified stocks that were poised to perform?
Understanding that the majority of information that Wall Street obsessed over seemed to be information that lagged rather than predicted major price moves, Kevin began with excel sheets mathematically testing market data points from both technical and fundamental schools of thought searching for which information added the most value to the investment process. The idea was to formulate a “fusion” of relevant data isolating stocks that were most likely to succeed while also providing a timeliness element for entries and exits via strong technicals. The result was a robust algorithm which generated numerical scores on a scale of 1-100; specifically a Fundamental Score, a Technical Score and a Master Score which was a weighted combination of the Fundamental and Technical Scores.
Since that time, FusionIQ has been extensively upgraded from its early spreadsheet days and today’s FusionIQ utilizes a four-dimensional algorithm fusing fundamental, technical, momentum and sentiment indicators.
It begins with the solid base on which FusionIQ stands. Our algorithm incorporates the most relevant and time-tested fundamental, technical, sentiment and momentum factors. It is the result of over 8 years of market research, validation, and revision. It relies on the best quality data, empowered people with deep knowledge, expertise, and experience, and a thorough understanding of the marketplace and of customer needs.
The philosophy that guides FusionIQ is a commitment to providing a true four-dimensional, top-to-bottom, objective view of stocks, industries, groups and sectors. Our customers rely on proprietary algorithmic numerical scores, rankings, and timing signals developed through a rigorous and disciplined process and presented through the transparent lens of actual historical correlations to price movement.
With over 8 years of actual historical FusionIQ scores, today’s FusionIQ is empowering professional traders, registered investment advisors, institutions and family offices with smarter analytics for smarter investing with results we can demonstrate.
FusionIQ’s proprietary four-dimensional scoring model includes but is not limited to: valuation, balance sheet strength, improving financials, price momentum, sentiment, and a broad range of technical factors. Our model is grounded in the belief that simpler is better, but more relevant information is preferred to less. The value-add of our model comes from the stability we present using quality, time-tested factors, and from providing a dynamic weighting scheme which amplifies the models effectiveness by adjusting the factor weights for various market environments.
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|A DYNAMIC, MULTI-FACTOR FUNDAMENTAL MODEL THAT EXAMINES OVER 70 FACTORS. A PROPRIETARY ALGORITHM DETERMINES WHICH FACTORS ARE MOST RELEVANT GIVEN CURRENT MARKET CONDITIONS AND ASSIGNS THOSE FACTORS GREATER WEIGHT. |
|A SENTIMENT MODEL THAT INCORPORATES THE MAGNITUDE AND DIRECTION OF EARNINGS REVISIONS, AS WELL AS CHANGES IN EXPECTATIONS FROM THE WALL STREET ANALYST COMMUNITY. |
|A PROPRIETARY WEIGHTING OF MULTIPLE TECHNICAL INDICATORS, INCLUDING THREE DIFFERENT TIME FRAMES OF TREND, AS WELL AS INDIVIDUAL AND GROUP FUND FLOWS. |
|A MODEL THAT INCORPORATES A SCORING OF STOCKS THAT HAVE THE BEST RETURNS OVER VARIOUS TIME FRAMES, FROM SHORT-TERM TO LONGER-TERM (WEEKS TO MONTHS TO YEARS). THE MODEL INCLUDES VOLUME MOMENTUM AND SHORT-TERM PRICE REVERSALS. |
Third Party Validated
FusionIQ methodology and efficacy were validated by an independent expert research company – white paper available upon request. They found that FusionIQ Master Scores above 70 and below 45 show valuable and consistent results over many different investment capitalizations and styles. Over the period 2013 through 2015 using a liquid universe with market capitalization above $200 million, stocks with a FusionIQ Master Score of 70 or more outperformed the universe 62% of the time, while stocks with a FusionIQ Master Score of less than 45 underperformed the universe 65% of the time. The average monthly model portfolio return for stocks, rebalanced monthly, with a FusionIQ Master Score of 70 or more was 35 bps above the universe while the average monthly return for stocks with a FusionIQ Master Score less than 45 was 72 bps below the universe. Note: These results are from a model portfolio backtest and not the results on a live, funded portfolio with real money.
Today’s FusionIQ, significantly enhanced since December 2014, reflects a four-dimensional view incorporating Fundamental, Technical, Momentum, and Sentiment indicators, and presents an unbiased, objective numerical Master Score (scale of 1-100) that doesn’t add to the noise and clutter but, rather, is simple, actionable, and remarkably accurate historically. Our proprietary algorithm does not just “fuse” dozens of inputs across four dimensions; it provides a dynamic weighting scheme which amplifies the models effectiveness by adjusting the factor weights for various market environments.
What FusionIQ delivers is not just "artificial intelligence", but the best form of artificial intelligence. Rather than seek to use technology to identify novel new inputs, FusionIQ relies upon time-tested fundamental, technical, momentum, and sentiment factors and uses technology to generate cleaner output – the Master Score. The correlation between FusionIQ Master Scores and stock prices – now viewable over a 3-5 year history – is irrefutable.
The value of FusionIQ, to both experienced professional advisors and active self-directed investors, does not stop with scoring individual stocks. By rolling up our proprietary, real-time, four-dimensional scores from the individual constituent (stock) level into Composite Master Scores, we can score industries, sectors and sub-sectors, and ETF’s as sums of their weighted individual component scores. As such, both our process and our output transcend changing industry classifications, index composition, and ETF construction and always reflect actual fundamental, technical, sentiment, and momentum characteristics based on our proven algorithm.