Portfolio Construction

Align Position Sizing with Research, Conviction, and Risk

Portfolio Construction helps portfolio managers translate research insights, valuation frameworks, and conviction signals into disciplined, transparent sizing decisions. Rather than relying on manual spreadsheets, fragmented tools, or isolated models, teams use a streamlined workflow that connects fundamental research to portfolio structure in real time.

Designed for fundamental investors, Portfolio Construction makes it easier to compare strategies, explore scenarios, understand the implications of each sizing choice, and maintain consistency with firm philosophy. Monitor your accuracy of inputs and forecasts throughout time, including internal estimates and models, price targets, voting processes, scenarios, catalysts, rankings, crowding, ESG, factors, external research, alternative data, etc. Every position becomes a traceable, research-backed decision—clear in intention, supported by data, and aligned with risk awareness.

A Connected Workflow for Sizing and Strategy

Integrate Research Inputs Directly Into the Sizing Process

Position sizing is most effective when informed by research context—not just market prices or intuitive judgment. Analysts' KPIs, valuation models, price targets, conviction ratings, and key thesis elements flow directly into the portfolio construction environment. Measure the projected annual return of your portfolio or conviction.

Evaluate Portfolio Scenarios and Alternatives

PMs can compare different strategy versions and scenario variations side by side. Whether adjusting exposures, changing conviction levels, or exploring factor sensitivities, scenario analysis becomes fast, transparent, and repeatable.

Understand the Drivers Behind Each Position

Portfolio Construction makes the "why" behind every position explicit. PMs can see research history, model updates, analyst commentary, KPI changes, and valuation shifts without switching tools. Create alerts when position weights or ROI is out of line with your constraints and process.

Stay Consistent with Process and Philosophy

Whether a firm uses conviction tiers, risk budgets, expected returns, valuation gaps, or style-based guidelines, Portfolio Construction supports the structure needed to maintain a disciplined investment approach.

Key Capabilities

Research-integrated sizing tools that incorporate KPIs, models, convictions, and thesis elements
Side-by-side comparison of portfolio scenarios and strategies
Real-time visibility into exposures, active weights, and risk changes
Direct connection to Risk Management for factor, idiosyncratic, and thematic insight
Alerts for threshold breaches, unwanted concentrations, or style drift
Full audit trails and versioning for decision documentation
Integration with attribution to evaluate historical sizing decisions
Configurable frameworks aligned to each firm's investment philosophy

Price Target Scenarios

Why Portfolio Construction Matters

Stronger Alignment Between Research and Portfolio Decisions

Every position reflects the full depth of research—not just top-level conviction.

More Confident Sizing Decisions

PMs can see how changes in size affect exposures, risks, and portfolio behavior before committing to a trade.

Consistent, Repeatable Process

Firms enforce structure without stifling PM autonomy, ensuring thoughtful and repeatable portfolio decisions.

Transparent Collaboration

Analysts understand how their inputs influence portfolio actions, closing the loop between fundamental research and execution.

Integrated Investment Lifecycle

Because Portfolio Construction sits inside Nexus, decisions flow directly into risk analytics and attribution—reinforcing clarity and accountability.

Use Cases

PMs adjusting positions ahead of an upcoming rebalance
Teams aligning sizing with updated analyst models or new KPIs
Reviewing scenario options for sector-level or factor-driven shifts
Preparing for investment committee reviews with transparent sizing logic
Ensuring alignment with internal guidelines such as max active weights or conviction tiers

Explore the Risk Suite

Discover how Portfolio Construction connects to the full Risk Suite for complete portfolio management, risk analytics, and attribution workflows.

Learn More

See How Portfolio Construction Strengthens Your
Investment Process

Frequently Asked Questions

How does Portfolio Construction improve sizing decisions?

It links research context, conviction, signals and scenarios directly to position sizing.

Does it support scenario comparison?

Yes—PMs can compare multiple portfolio versions side by side.