I keep seeing the word algorithm or algorithmic investing. What exactly does that mean?

Algorithm is a broad term meaning a procedure or formula for solving a problem, most commonly in the context of computer programming.

When we refer to “our algorithm” we are talking about the computer programming that takes our portfolio management principles, and through a series of mathematical equations and constraints is able to evaluate your portfolio (and thousands of others) very quickly. The analysis that we complete daily could take a team of advisors months to complete using traditional investment tools like spreadsheets and calculators. This greatly reduces the cost of advice as well as the chance for human errors and biases when making recommendations.

However it is not simply a computer that is managing your account. We have a human investment team that evaluates what the algorithm is recommending every day, and over time. If we don’t like a particular recommendation or behavior, we modify it immediately.

To learn more about algorithms effect on the greater economy read our article here.