Portfolio Effect LLC
           Who we are and What we do
         

 

What is the Portfolio Effect?  

The "portfolio effect" is the optimization of financial performance one can obtain by applying the principles of portfolio theory and diversification to a group of investments.  For example, it is a generally understood principle that a portfolio's overall risk can be mitigated by holding a sufficiently diverse set of investments. The design on our company logo illustrates the theory of the efficiency frontier, which is the line connecting the rate of return on a risk-free asset to the tangential point of the efficiency frontier of the feasible set of all risky portfolios. Our company logo is a graphical representation of this concept, where the vertical axis measures the return level, the horizontal axis measures the risk level and the dark gray region represents the feasible set of all risky portfolios.  The curve separating the dark and light gray regions is the efficiency frontier of risky portfolios. The diagonal line separating the white and light gray regions represents the true efficiency frontier. The point where that line intersects the vertical axis indicates the rate of return on a risk-free investment. All optimal portfolios reside on that diagonal line. The only portfolio on that line which does not include some long or short positions in the risk-free asset is the point with the arrow next to it, where the curve and the line intersect. That intersection is our target portfolio.
 

What is Portfolio Effect LLC?

Portfolio Effect LLC is currently what you would call "a couple of guys doing some angel investing" but it sounds a lot more compelling if you call it a Private Equity Venture firm, so we do.  Portfolio Effect LLC invests time, money and energy into great teams, product ideas and business models, that land as close to that dot (see our logo above) as possible.  
 

Who are the Founders and Partners of Portfolio Effect LLC?

 

 

Portfolio Effect LLC was co-founded by Ted Weinberg (on the left) and Stephen Quinn (on the right) in July of 2004.  It evolved out of their shared passion to help others start companies and get the funding they need to monetize their ideas and inventions.  Portfolio Effect LLC invests modest sums in seed stage companies; this is generally done to prepare the start-up for presentation to angel or other venture capital sources. Though we have placed investments in companies at more advanced stages of development.
 

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