San Francisco, California--(Newsfile Corp. - January 26, 2023) - Sidepocket, a deep-tech financial startup, has announced that its platform will soon be available in the app store. The platform will launch on iOS on February 13, 2023, and will offer an innovative robo-advisor platform that solves the multi-trillion-dollar drawdown problem, an issue that has historically resulted in shareholders losing trillions of dollars due to overexposure to market corrections and outdated financing paradigms.
Sidepocket is the only robo-advisor to offer tactical asset allocation to the retail investor. The Sidepocket platform will offer investors a marketplace of proprietary asset allocation strategies, each designed with different performance parameters, and will rebalance these assets monthly.
The platform provides access to Sidepocket's core proprietary technology, consisting of models that apply advanced statistical analysis, quantitative modeling, and predictive analytics with the goal of minimizing drawdowns and improving risk-adjusted returns.
Sidepocket's founder and CEO, Daniel Idzkowski, states that his team is pleased to be opening the platform out of its closed-beta and removing the waitlist, as this move will reach more customers. "We want to modernize investing, not just take old investing paradigms and digitize them like what was done by other robo-advisors," he says. "Sidepocket is intended to democratize active management solutions for everyone. We're disrupting the antiquated wealth management industry and giving investors the tools they need to minimize the impact of market crashes and dips through tactical asset allocation."
Idzkowski states that Sidepocket was specifically created to address drawdown, which he calls an epidemic in the financial world. "This is an issue that has gone unaddressed for years," he says. "What most people don't realize is that losses don't have a linear relationship to gains, so when your retirement portfolio loses 30% like many did last year, you need 42% just to get your money back."
He adds that his team is quite proud of Sidepocket's performance in 2022. "US stocks had the worst year in more than a decade for global equities and bonds. The classic 60/40 portfolio has seen some of the worst performance in nearly 100 years." says Idzkowski. "Sidepocket outperformed all of its benchmarks and blew away our every expectation in 2022."
According to Idzkowski, a company like Sidepocket is essential for those who have experienced problems with the wealth management and investment industry. "Just because investing in the 60/40 portfolio, or passively in a basket of stocks and bonds over the last 30 years, has averaged roughly 7% annually doesn't mean that you will get that over the next 30 years, and that's exactly what happened in 2022," he says. "The problem is that correlations of these various asset classes in today's world are highly variable and much higher than they were 70 years ago; what's worse is that during a market crash when you need protection the most, correlations approach 100%."
As they prepare to open their platform and waitlist, Sidepocket's team continues to research new and innovative ways to scale and expand the company, including expanding its offerings to B2B financial service providers. Idzkowski says, "We see a huge opportunity to partner with existing registered investment advisors and provide our technology as a value-add to their offerings. We also have some interesting plans to expand aggressively that are already in the works, so definitely stay tuned in for more."
He shares that Sidepocket keeps a close eye on the latest developments in both artificial intelligence technology and finance to better serve its clients. Plans for 2023 include integrating crypto strategies into the platform to make crypto more reliable as an investment asset class for both the seasoned and casual investor. "Crypto is a very difficult asset class to gain responsible exposure to; we think we've figured out a way to bring crypto to investors in a more sustainable fashion," says Idzkowski. "We're looking to bring transformative tech to investing and modernize the core approaches offered to investors today."
Sidepocket will officially be launching to the public on iOS devices on February 13th.
Sidepocket is a venture-backed deep tech company offering an investing solution that uses advanced statistical analysis, quantitative modeling, and predictive analytics to reduce drawdown in bear markets and crashes. Sidepocket was founded by Daniel Idzkowski, a serial entrepreneur who gained international recognition for creating the SKUNKLOCK, a bicycle lock that fights back against thieves with noxious chemicals. After identifying the shortcomings in the bike lock industry, he turned his attention to the financial industry, where he aims to bring transparency and better solutions for investors with his advanced technology and innovative ideas.
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