Water Risk Indexing Platforms
Managing Fat Tails from Environmental Exposures
About Us
Equarius Risk Analytics is a data solutions provider focused on financial risk management in portfolios with assets exposed to water.
Our index platform provides mainstream financial risk metrics capturing embedded water risk through a volatility risk premium. Our patent-pending learning algorithms were developed with The University of Michigan (UM) and LimnoTech, an environmental services firm. Equarius Risk Analytics has secured an all fields of use license from UM.
Our quantitative analytics and finance team is focused on understanding the impact of water and weather risks on financial assets in the capital markets, and on structuring indices to integrate water risk in active and passive portfolio management.
Our Partners
ERA collaborates with index providers (e.g. MSCI, Limeyard), data providers (e.g. CDP, FactSet, Bloomberg), asset managers (e.g. Dana Investment Advisors, Nephila Advisors, LeggMason, QS Investors), and non-profit organizations (e.g. WRI, WWF, Ceres) to improve the design and structuring of the data streams and indexes for industry verticals.
Index Design Platform for Water Risk
Water and weather risks are causing fat tails in securities performance. The impact is unsystematic (company- and/or industry-specific) and is expected to be diversifiable in portfolio allocations.
Our Platform
Seeking Alpha - Structuring Industry-Specific Water Risk Indexes
Financial Volatility
Value-at-risk (VaR) analytics of securities and industry-focused benchmarks
Water Risk Exposures
Economic productivity exposure and management of geography-informed risks
Intangibles Impacts
Integration of SEC, voluntary and media disclosures in data and indexes
waterBeta Testing
Verification and analysis of financial waterBeta for portfolio management
Quantitative Support for Index Providers and Asset Managers
Financial Volatility
Value at risk analysis
Since water and weather risk have short term and extreme effects on share prices, value at risk (VaR) metrics are calculated on the security and benchmarked in its GICS industry. Assessment of systemic vs. diversifiable risk impacts.
Water Exposures
Financial and economic productivity impacts
Each company's regional asset exposure to water and weather risk is quantified in a financial context (economic productivity, operations) to understand asset intensity and risk management impacts
Intangibles Analysis
Intangibles risk analytics
Groundtruthing of financial risk probabilities is essential to inform asset allocation strategies. Natural language processing (NP) of textual data from required, voluntary and informal disclosures is used to adjust risk exposures.
waterBeta and Index Structuring
Informed decisions for active and passive managers
Company-specific waterBeta serves to understand volatility risk premiums in portfolios, and can be structured to adjust/tilt allocations to uncover alpha in cross-industry verticals. We design, test, and license indices.
Product Description
Management and Technical Team
Peter Adriaens PhD PE
Cofounder and Acting CEO
Product development
Director, Center for Smart Infrastructure Finance, The University of Michigan; Corymbus Asset Management, Global CleanTech Cluster Assn.; Wolverine Venture Fund
Greg Peterson MS
Cofounder and COO
Operations management and strategic decision-making; Executive VP of LimnoTech
Hua Tao PhD
Technical specialist
Programming and VaR analytics; database models; statistics Water models and programming; API models; portfolio modeling; proficiencies in FORTRAN 90/95, Visual Basic 6, VBA, C++, and Matlab
Tad Slawecki MS
Software Development
Software Development: Database architecture design; Python/Java; GIS models; visualization and decision tools
Iulia Mogosanu MBA
Financial Analyst
Risk management and corporate financials, UniCredit Bank (Austria); Huron River Ventures; Amazon; Zell Lurie Commerc. Fund
Ric McCullough CPA
Technical Specialist
Mathematical models; financial risk analytics
Noemi Barabas, PhD
Risk Assessment
Python modeling; Multivariate statistics and Value-at-Risk analytics.
Advisory Board
Paul Freedman PE
Investor
co-Founder of LimnoTech; past President of the international Water Environment Federation; domestic & international projects
Tim Dekker PhD PE
Investor
President of LimnoTech; hydrological modeling expertise; multi-variate statistics
Cameron Smith MBA
Business Development
Bain and Company; CEO, Covaron Advanced Materials; Senior Director, Product Innovation at CVS Health
Lydia Miller MBA
Development Partner
Senior Vice President and portfolio specialist at Dana Investment Advisors; portfolio allocation, risk management, and ESG investment strategies
© 2017