Multi-dimensional method and system of simulating and managing an "Alliance Investment Portfolio"
First Claim
1. A method for simulating and managing a portfolio of assets including alliance investments, said method comprising the steps of:
- (1) determining the financial fit of a plurality of alliance investments by categorizing thereof according to a 3×
3 matrix nine combinations of alliance mix, financial fit being defined as the existence of synergies of capital structures of between select alliances within a portfolio of alliance investments;
(2) testing each proposed alliance through a geometric test for sustainability of growth, said geometric test correlating the relationship among risk, return expectation, financial instrument and interest cost of said proposed alliance in establishing the asset mix of said portfolio of alliance investment; and
(3) correlating the liquidity to be provided by investors with a vertical axis through the center of said 3×
3 matrix in creating a 3×
3×
3 spatial representation of liquidity and leverage relationship for alliance investments, the inter-relationship amoung the variables corresponding to the market valuation of said alliance investments, whereby said method provides financial information of said portfolio of alliance investments transparently and dynamically.
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Abstract
The present invention is a novel method simulating and managing an alliance investment portfolio. It begins with the rationalization and creation of select alliances to become assets of an investment portfolio. The assets are categorized into a matrix combination of nine different financial variations that respond to the iterative nature of investment dynamics. Each of the select alliance is subjected to a ball and prism test determining the sustainability of growth of such alliance within the investment portfolio. Finally, the liquidity to be provided by investors to a vertical axis through the center of matrix combination of nine different financial variations in creating spatial representation of liquidity ad leverage relationship for alliance investments. Through the 3×3×3 alliance mix representation, one could derive valuation, pricing and other portfolio management information for alliance portfolio transparently and dynamically.
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Citations
10 Claims
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1. A method for simulating and managing a portfolio of assets including alliance investments, said method comprising the steps of:
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(1) determining the financial fit of a plurality of alliance investments by categorizing thereof according to a 3×
3 matrix nine combinations of alliance mix, financial fit being defined as the existence of synergies of capital structures of between select alliances within a portfolio of alliance investments;
(2) testing each proposed alliance through a geometric test for sustainability of growth, said geometric test correlating the relationship among risk, return expectation, financial instrument and interest cost of said proposed alliance in establishing the asset mix of said portfolio of alliance investment; and
(3) correlating the liquidity to be provided by investors with a vertical axis through the center of said 3×
3 matrix in creating a 3×
3×
3 spatial representation of liquidity and leverage relationship for alliance investments, the inter-relationship amoung the variables corresponding to the market valuation of said alliance investments,whereby said method provides financial information of said portfolio of alliance investments transparently and dynamically. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
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Specification