Introducing Lumen R4A
Global Markets Intelligence
R4A is a digital global investment solution that fulfills the three most important investment functions. It systematically evaluates and ranks global opportunities at a granular level based on fundamental value, then constructs a tailored portfolio centred entirely on your objectives using R4A’s Total Portfolio Approach.
What is R4A
A standalone digital investment engine delivering end-to-end institutional-grade portfolios, powered by the modern Total Portfolio Approach (TPA).
Rather than asking how much in equities, bonds, real estate, etc. TPA asks: “Given the investment objectives and constraints, what combination of all globally available investments delivers the best total-portfolio outcome?”–aligning the investment function with modern market realities and opportunities.
How it works
Goal-driven, data-powered portfolios: Uses TPA to build customized, globally optimized investments that chase outcomes—not benchmarks, thereby increasing the probability of meeting the customer’s objectives and the probability of successful outcomes.
Why it works
R4A empowers clients, advisors, and institutions alike with goal‑focused, tech‑driven portfolios that deliver better outcomes, stronger engagement, and a distinct competitive edge.
Our Investment Framework
Lumen Advisors, also known as Lumen Global Investments, is a San Francisco-based investment manager and InvestTech and has launched Lumen R4A. The firm’s 3 Investment Principals are veteran global macro managers with sovereign credit roots and complementary skills across global asset classes and capital structures. Our investment philosophy is predicated on three key and basic principles:
- Active Management: We operate exclusively in inefficient global markets without the limitations and contradictions of a benchmark other than absolute return.
- Value Investment in the Benjamin Graham tradition: Our scope is to identify value with a margin of safety large enough to make our capacity to methodologically and accurately forecast the future – – futile.
- Total Portfolio Approach (TPA): Lumen has pioneered the modern TPA as the backbone of R4A’s operating system and investment philosophy. Strategies are tied directly to the investment goal (income, preservation, growth, etc.), rather than to generic risk buckets such as conservative, moderate or aggressive. By construction, TPA raises the probability of meeting the customer’s objective and the probability of successful outcomes and performance.
Lumen’s investment approach is value-based, as the Principals strongly believe value trumps any other investment style over the investment cycle, particularly in inefficient markets (e.g. emerging, irrational markets). Our objective is to identify intrinsic value with a margin of safety large enough to make the capacity to methodologically and accurately forecast the future totally futile. We adopt relative value strategies to manage directional risk and produce a low beta, with minimal correlation with major benchmarks.
“Successful, value-based investment strategies must integrate traditional bottom-up analyses with an objective, quantitatively defined Global Value Framework.“
Notable Research Paper
Portfolio Construction
Portfolio Construction and Global Asset Allocation: A Practitioner Solution to a Black-Litterman Flaw
Latest Articles:
What R4A Provides
Functions
- Comprehensive Global Database Across Markets, Regions, Sectors, Factors, Themes: Securities, ETFs, & Benchmarks*
- Global Search Engine in 4 Ways*
- Discovery by Countries
- Global Strategy
- Predefined Strategies
- Tickers and Names
- Risk Profiling
- Objective
- Required returns
- Psychometric Analysis: Risk Tolerance
- Risk Capacity
Tools
- Selection Tools*
- Rank Value Using
Fundamentals - Aggregation/ Custom Indexing
- Rank Value Using
- Strategy Enhancement*
- Proprietary Version of Black-Litterman Model with Personal Views
- B&L Portfolio Optimization:
- Efficient Frontier
- Risk Measurement
- VaR, CVAR, and Monte Carlo Simulations to Measure Downside Risk, Stress Testing
- Probability of Success
Reports & Analytics
- Positions and Allocations
- Portfolio Exposure Map
- Fundamentals and Market Data
- Efficiency Frontier
- Portfolio Attributes
- Risk Analytics
- Comparison with Benchmark
- Probability of Goal Reached
- Risk Profiling
*Available in the Enterprise version only
