Ubiquitous need Portfolios are a common device in many financial spheres for spreading risk. Not only are portfolios of stocks, bonds and other financial instruments common in finance, but there is also need in many spheres to optimize portfolios of everything from real estate holdings to insurance coverage.

Survey the possibilities We generate thousands (even millions) of possible portfolios, using evolutionary algorithms to seek the best portfolios within a large search space. Indeed, it can make sense to optimize across many portfolios at once, in case some can be improved by swapping parts among them to avoid transaction costs. The attributes of the best ones are quickly determined using a cluster of computers to evaluate the portfolios.

Manage complexities Evaluating many alternative portfolios explicitly avoids the failures of simpler algebraic optimization techniques that are caused by the nonlinear discontinuities in how portfolio attributes change as thresholds are passed. For example, thresholds may exist for bulk rates for transaction costs, or for rates of or eligibility for taxation on the returns.

Choose by merit The cost and performance of the best portfolios is presented to the analyst so that they can explore the tradeoffs graphically. Our interactive decision-making environment is used today by billion-dollar companies to manage enormous portfolios. Aetion's software allows the analyst to exercise their judgment in comparing many alternatives, so that they may select the best choice from an informed position.