Helios Quantitative with Chris Shuba | E298

Insourced CIO.

On today’s episode of Fintech Impact, Jason is going to talk to Chris Shuba, Founder and CEO of Helios Quantitative. It is an "in-source CIO," offering a unique solution for financial institutions. They provide all the functions of an investment department without the associated costs and hassles. Helios Quantitative simplifies and streamlines the operations of an advisory practice.

Episode Highlights 

  • 01.52: Chris notes that while models were initially a primary focus, Helios has expanded its services and technology to become an all-encompassing in-source CIO, moving beyond a sole emphasis on modelling.

  • 02.23: Chris outlines the core goals of most advisors, which include looking impressive to clients, spending more time on their strengths, achieving scalability, and ultimately being profitable.

  • 03.21: Chris emphasizes that Helios' value proposition is rooted in aiding advisors in advancing in one of these three "moving the needle" areas.

  • 05.31: Jason shifts the conversation towards the technology aspect of Helios Quantitative's operations. He is interested in understanding the specific systems and technology they utilize in providing their services.

  • 05.40: Helios Quantitative's main system is called "Helios Tools," which serves as a technology platform that organizes their relationship with advisors. They consider themselves a technology-enabled service, similar to Uber, where technology facilitates interactions and makes processes more efficient.

  • 09.30: Chris discusses how Helios Tools aims to provide advisors with the technology and automation necessary to offer a world-class asset management experience to their clients. They are also working on integrations with trading platforms like Orion and major financial planning software to streamline the advisory process.

  • 09.42: Jason emphasizes that Helios Quantitative covers the entire vertical funnel for advisors, from ideation to implementation to communication and maintenance, providing a comprehensive value proposition throughout the process.

  • 11.47: Chris mentions their preference for working with disruptive-thinking advisors who align with their approach. He also highlights the cost aspect, emphasizing that model marketplaces can be expensive, while Helios aims to be a low-cost alternative with more capabilities.

  • 12.30: Jason asks whether Helios initially intended to provide all the services or if their focus was primarily on offering a better methodology for building models and whether the additional services were driven by consumer demand or considered as options.

  • 16.38: Chris expresses a wish for greater openness and attentiveness among advisors to companies like Helios that are introducing disruptive and innovative approaches. Chris hopes for an opportunity to have at least five minutes of an advisor's time to showcase something new and believes that a more open-minded industry would make it easier for innovative firms to gain the attention they need.

  • 17.24: Chris discusses the challenge of underestimating the importance of model designs and their correlation with real-world events. Chris explains that Helios originally used linear mathematics, which sometimes didn't align with real-world complexities, leading to advisor confidence issues.

  • 19:28 Chris expresses his enthusiasm for the current phase of the company's development, noting that he hasn't been this excited since the early days of the business.

  • 19.57: Helios offers a unique approach in the industry, focusing on asset management, which Chris believes has been somewhat neglected, and aims to provide a scalable and profitable way for advisors to deliver a world-class asset management experience while remaining true to the values of financial planning and service.

3 Key Points

  1. Chris mentions their exciting plans for further development of the platform beyond two main function Model Development and Management and Research and Analytics.

  2. Chris draws an analogy between their approach and the concept of an aircraft carrier in a fleet. Still, it needs a surrounding ecosystem of supporting components to protect it and ensure its effectiveness.

  3. Chris highlights the accessibility of machine learning and AI tools for smaller companies like Helios, which empowers them to develop and deploy cutting-edge technology.

Tweetable Quotes

  • “Helios focuses on mathematical diversity, providing multiple types of models to increase diversification within a portfolio. The goal is to bring institutional-level diversification strategies into the retail space, reducing risk and enhancing portfolio stability.” – Chris

  • “Simply adding more components does not guarantee increased profitability or improved client satisfaction. All components are needed to create a world-class asset management experience.” - Chris

Resources Mentioned:

Fintech ImpactJason PereiraFintech