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Portfolio Toolbox Help Documentation

Welcome to Portfolio Toolbox

Portfolio Toolbox  is Kavout’s AI-powered professional suite for systematic factor portfolio construction, analysis, and optimization. Whether you’re building a new portfolio from scratch, diagnosing an existing one, or screening for new opportunities, Portfolio Toolbox provides institutional-grade tools to help you make data-driven investment decisions.

Table of Contents

  1. Getting Started
  2. Core Components
  3. Factor Investing Framework
  4. Portfolio Builder
  5. Portfolio Diagnosis
  6. Multi-Factor Screener
  7. How to Use Portfolio Toolbox
  8. Investment Applications
  9. Tips & Best Practices
  10. Support & Additional Help

Getting Started

Portfolio Toolbox empowers investors to build smarter stock portfolios using easy-to-use factor investing tools. By combining quantitative analysis with AI-powered diagnostics, it transforms complex portfolio management into an intuitive, systematic process.

Learn more about Portfolio Toolbox: Unveiling Kavout’s Portfolio Toolbox: Your AI-Powered Investment Assistant 

Key Benefits

  • Systematic Construction: Build factor-tilted portfolios with sophisticated weighting schemes
  • Deep Analysis: Comprehensive factor exposure and sector decomposition
  • Advanced Screening: Access to 60+ sub-factors for precise stock selection
  • Risk Management: Detailed return/risk statistics and portfolio metrics
  • Professional Tools: Institutional-grade analytics at retail investor pricing
  • AI-Powered Insights: Machine learning algorithms for smarter decisions

Core Components

Portfolio Toolbox consists of three integrated modules designed to work together seamlessly:

1. Portfolio Builder

Purpose: Construct customized portfolios from scratch

  • Build factor-tilted portfolios
  • Multiple stock universes and sectors
  • Sophisticated weighting schemes
  • Real-time performance analytics

2. Portfolio Diagnosis

Purpose: Analyze and optimize existing portfolios

  • Upload current holdings
  • Factor exposure analysis
  • Sector concentration review
  • Performance attribution

3. Multi-Factor Screener

Purpose: Discover new investment opportunities

  • Screen using 5 major factors
  • Access 60+ sub-factors
  • Custom ranking algorithms
  • Interactive visualization

Factor Investing Framework

Portfolio Toolbox is built on a robust factor investing framework that helps you understand and leverage market drivers:

The Five Major Factors

1. Quality

What it measures: Financial strength and profitability

  • Key Metrics: ROE, ROA, earnings stability
  • Investment Logic: High-quality companies tend to outperform over time
  • Best For: Conservative investors, market downturns

2. Value

What it measures: Undervaluation relative to fundamentals

  • Key Metrics: P/E, P/B, EV/EBITDA
  • Investment Logic: Buying below intrinsic value provides margin of safety
  • Best For: Contrarian investors, patient capital

3. Momentum

What it measures: Recent price performance trends

  • Key Metrics: 3/6/12-month returns, relative strength
  • Investment Logic: Winners tend to keep winning in medium term
  • Best For: Trend followers, growth markets

4. Growth

What it measures: Earnings and revenue expansion

  • Key Metrics: EPS growth, revenue growth, margins
  • Investment Logic: Growing companies command premium valuations
  • Best For: Aggressive investors, bull markets

5. Low Volatility

What it measures: Price stability and lower risk

  • Key Metrics: Standard deviation, beta, drawdowns
  • Investment Logic: Lower risk can lead to better risk-adjusted returns
  • Best For: Risk-averse investors, late-cycle markets

60+ Sub-Factors

Beyond the major factors, Portfolio Toolbox provides granular analysis through sub-factors:

  • Profitability Metrics: Gross margin, operating margin, FCF yield
  • Leverage Ratios: Debt/equity, interest coverage
  • Efficiency Measures: Asset turnover, working capital
  • Technical Indicators: Price patterns, volume trends
  • Sentiment Factors: Analyst revisions, insider activity

Portfolio Builder

The Portfolio Builder enables systematic portfolio construction with professional-grade features:

Construction Process

Step 1: Universe Selection

Choose your investment universe:

  • Broad Market: S&P 500, Russell 1000, Russell 3000
  • Size-Based: Large-cap, mid-cap, small-cap
  • Sector-Specific: Technology, healthcare, financials, etc.
  • Custom Lists: Upload your own stock universe

Step 2: Factor Tilting

Customize factor exposures to match your strategy:

  • Equal Weight: Balanced exposure to all factors
  • Custom Tilts: Overweight preferred factors
  • Dynamic Allocation: Adjust based on market conditions
  • Risk Parity: Balance risk contribution

Step 3: Weighting Schemes

Select portfolio weighting methodology:

  • Market Cap Weighted: Traditional index approach
  • Equal Weighted: Same allocation to each stock
  • Factor Weighted: Weight by factor scores
  • Risk Weighted: Inverse volatility weighting
  • Custom Weights: Define your own scheme

Step 4: Constraints and Rules

Apply portfolio constraints:

  • Position Limits: Min/max position sizes
  • Sector Caps: Prevent concentration
  • Liquidity Filters: Minimum trading volume
  • Quality Thresholds: Minimum factor scores

Output and Analytics

Factor Loading Analysis

  • Visual breakdown of factor exposures
  • Comparison to benchmark
  • Factor attribution analysis
  • Historical factor performance

Sector Exposure

  • Sector allocation pie chart
  • Over/underweight vs benchmark
  • Sector factor characteristics
  • Industry concentration metrics

Risk/Return Statistics

  • Expected return estimates
  • Volatility projections
  • Sharpe ratio calculations
  • Maximum drawdown analysis
  • Correlation matrices

Portfolio Diagnosis

Portfolio Diagnosis provides deep insights into your existing holdings:

Upload Methods

Option 1: File Upload

  • Supported Formats: CSV, Excel, TXT
  • Required Fields: Symbol, shares/weight
  • Optional Fields: Purchase price, date

Option 2: Manual Entry

  • Type or paste ticker symbols
  • Enter position sizes
  • Adjust weightings

Analysis Features

Factor Exposure Analysis

Visual Factor Radar Chart

  • See your portfolio’s factor profile at a glance
  • Compare to market benchmarks
  • Identify factor gaps or concentrations

Detailed Factor Scores

  • Individual stock factor contributions
  • Portfolio-weighted averages
  • Percentile rankings
  • Time series analysis

Sector Analysis

Concentration Metrics

  • Sector weights vs benchmark
  • Concentration risk scores
  • Correlation analysis
  • Diversification ratios

Performance Attribution

  • Sector contribution to returns
  • Factor contribution by sector
  • Risk decomposition

Sub-Factor Deep Dive

Granular Insights

  • All 60+ sub-factor scores
  • Stock-level detail
  • Historical trends
  • Peer comparisons

Multi-Factor Screener

The Multi-Factor Screener helps discover new investment opportunities:

Screening Process

Step 1: Define Criteria

Factor Selection

  • Choose primary factors
  • Set minimum scores
  • Add sub-factor filters
  • Combine with fundamentals

Universe Filters

  • Market cap ranges
  • Sector selection
  • Geographic focus
  • Liquidity requirements

Step 2: Ranking Methods

Single Factor Ranking

  • Sort by individual factors
  • See top/bottom performers
  • Percentile distributions

Composite Ranking

  • Combine multiple factors
  • Custom weight factors
  • Create factor scores
  • Normalized rankings

Layered Sorting

  • Primary sort factor
  • Secondary sort criteria
  • Multi-level filtering
  • Complex strategies

Step 3: Results Analysis

Stock Rankings Table

  • Factor scores for each stock
  • Composite rankings
  • Key fundamentals
  • Recent performance

Interactive Charts

  • Historical return charts
  • Factor score evolution
  • Scatter plot analysis
  • Performance attribution

Export Capabilities

  • Download screener results
  • Save screening criteria
  • Create watchlists
  • Generate reports

Advanced Features

Custom Factor Combinations

  • Create your own factors
  • Combine sub-factors
  • Weight by importance
  • Save custom screens

How to Use Portfolio Toolbox

Getting Started Workflow

  1. Access Portfolio Toolbox

  2. Choose Your Path

    • New portfolio? Start with Portfolio Builder
    • Existing portfolio? Use Portfolio Diagnosis
    • Looking for ideas? Try Multi-Factor Screener

Building Your First Factor Portfolio

Step-by-Step Guide:

  1. Select Portfolio Builder
  2. Choose S&P 500 universe (good starting point)
  3. Set factor tilts:
    • Quality: 30%
    • Value: 20%
    • Momentum: 20%
    • Growth: 20%
    • Low Volatility: 10%
  4. Select equal weighting
  5. Review factor exposures
  6. Export portfolio

Diagnosing Your Current Portfolio

Analysis Process:

  1. Prepare your holdings list
  2. Upload to Portfolio Diagnosis
  3. Review factor exposures
  4. Check sector concentration
  5. Identify improvement areas
  6. Generate optimization report

Finding New Opportunities

Screening Example:

  1. Open Multi-Factor Screener
  2. Filter: Large-cap stocks
  3. Criteria:
    • Quality score > 70
    • Value score > 60
    • Positive momentum
  4. Sort by composite score
  5. Review top 20 results
  6. Research individual stocks

Investment Applications

Strategic Asset Allocation

  • Build core portfolio positions
  • Implement factor tilts
  • Manage style exposures
  • Rebalance systematically

Tactical Adjustments

  • Rotate factors based on cycle
  • Adjust for market conditions
  • Implement momentum overlays
  • Manage risk dynamically

Risk Management

  • Monitor concentration risk
  • Track factor exposures
  • Stress test portfolios
  • Implement stop-losses

Performance Enhancement

  • Identify alpha sources
  • Optimize factor mix
  • Reduce portfolio drag
  • Enhance risk-adjusted returns

Different Investor Types

Conservative Investors

  • Emphasize Quality and Low Volatility
  • Moderate Value exposure
  • Minimal Growth/Momentum
  • Focus on downside protection

Growth Investors

  • High Growth and Momentum tilts
  • Moderate Quality
  • Lower Value emphasis
  • Accept higher volatility

Value Investors

  • Maximum Value exposure
  • High Quality scores
  • Contrarian momentum
  • Patient capital approach

Balanced Investors

  • Equal factor weights
  • Diversified exposures
  • Regular rebalancing
  • Moderate risk profile

Tips & Best Practices

1. Factor Diversification

  • Don’t over-concentrate in single factors
  • Factors work differently in various market cycles
  • Combine complementary factors
  • Monitor factor correlations

2. Regular Monitoring

  • Review factor exposures monthly
  • Check for style drift
  • Update based on market regime
  • Rebalance when needed

3. Position Sizing

  • Avoid excessive concentration
  • Set maximum position limits
  • Consider liquidity constraints
  • Use risk-based sizing

4. Sector Balance

  • Prevent sector concentration
  • Understand sector-factor relationships
  • Maintain diversification
  • Monitor industry risks

5. Cost Considerations

  • Factor in transaction costs
  • Minimize unnecessary turnover
  • Consider tax implications
  • Balance costs vs benefits

6. Common Pitfalls to Avoid

  • Chasing recent factor performance
  • Ignoring factor interactions
  • Over-optimizing on historical data
  • Neglecting fundamental analysis
  • Forgetting about costs and taxes

7. Best Practices by Market Condition

Bull Markets

  • Increase Growth and Momentum
  • Moderate Quality exposure
  • Reduce Low Volatility
  • Stay invested

Bear Markets

  • Emphasize Quality and Low Volatility
  • Increase Value opportunities
  • Reduce Growth exposure
  • Preserve capital

Volatile Markets

  • Balance all factors
  • Increase diversification
  • Regular rebalancing
  • Focus on risk management

Support & Additional Help

Access Portfolio Toolbox

  • Main Platform: Portfolio Toolbox 
  • Professional-grade portfolio construction and analysis
  • 60+ factors for comprehensive screening

Pricing

  • First Month: $7 (special introductory price)
  • Monthly: $49 (less than two cups of coffee per week!)
  • Annual: Save with annual subscription

Additional Resources

What’s Included

  • Full access to all three modules
  • Real-time data and analytics
  • Export capabilities
  • Customer support
  • Regular updates

Subscribe Now  to start building smarter portfolios

Conclusion

Portfolio Toolbox transforms factor investing from a complex institutional strategy into an accessible tool for all investors. By combining systematic portfolio construction, comprehensive diagnostics, and advanced screening capabilities, it provides everything needed to build and manage factor-based portfolios successfully.

Whether you’re constructing your first factor portfolio, optimizing existing holdings, or searching for new opportunities, Portfolio Toolbox delivers institutional-grade analytics at an affordable price. The combination of AI-powered insights and proven factor investing principles helps you make more informed decisions and achieve better risk-adjusted returns.

Ready to elevate your investment strategy? Get started with Portfolio Toolbox  and join the smart investors using factor-based approaches to beat the market!

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