Boston Firm Patents Portfolio Trading System

September 20, 2005 ( - A Boston-based institutional research and investment firm has won a second patent - this time for its portfolio trading management process, the company announced.

In a news release, New Frontier Advisors (NFA), said the newest patent covered the firm’s new technology, which is designed to help portfolio managers trade more effectively while reducing costs. The firm’s first patent was granted in 1999 for a broad-spectrum mathematical-statistical process for effectively enhancing the investment performance of optimized portfolios. .

“Resampling is a powerful computational-statistical tool that can have a substantive impact on the performance of optimized portfolios,” Richard Michaud, president and chief investment officer at New Frontier Advisors, said in the news release.  “The new patent extends the use of resampling techniques to provide effective tools for portfolio rebalancing.”

According to the company, the new procedure provides a rule that computes a need-to-trade probability for a given portfolio. 

The unique properties of the procedure, according to the announcement, include:

  • substantial, nearly uniform discriminatory power across the Resampled Efficient Frontier
  • stable, accurate range rule estimation
  • portfolio trading rules
  • customizable trading rules relative to demand characteristics of institutions, asset classes, and strategies
  • potential for automatable trading implementation. 

Software incorporating the patented NFA Portfolio Rebalancing technology is now available from New Frontier Advisors at .