Portfolio Tactics
A worked example of what optimisation looks like in wealth management
Portfolio Tactics is not a product you can buy. It is a system Optimatika built for private banking and wealth management, kept here because it shows the kind of problem we are usually called in for — and because the shape of that problem is more instructive than any description of our capabilities would be.
The problem it solves
A wealth manager holds one view of the market and many portfolios. Those portfolios sit at different risk levels, and each was promised active rebalancing in line with that single expert view. Doing this by hand does not scale, and worse, it drifts: the recommendation given to a cautious client stops being consistent with the one given to an aggressive client, even though both were supposed to follow from the same view.
Portfolio Tactics does one thing. It translates an individual market view into a continuum of optimal portfolios across risk levels — simultaneously, consistently, and reproducibly.
Views are not certainties
A real market view is not a set of point forecasts. It contains uncertainty, competing scenarios and different degrees of conviction, and all of that has to be weighed into one coherent view before it can be applied to anything.
This is where the mathematics earns its place. Merging a market equilibrium portfolio with a subjective view, weighted by confidence, is the Black–Litterman problem — and the system handles an arbitrary number of risk profiles from that one merged view. It will suggest how to improve strategic positions, how to allocate tactically, how to complement a portfolio that already exists, and how to implement a target mix using a limited set of predefined mandates.
Why it is on this site
Work like this is where ojAlgo came from. The library exists because problems of this shape needed solving on the JVM, and the optimisation, linear algebra and Black–Litterman machinery in ojAlgo today was written to serve them.
If you are building something in this territory — portfolio construction, risk, market simulation, anything where a view has to become an allocation — that is squarely what Custom Work covers.