Fund managers seek to optimize portfolio – maximize return while controlling risk measured in various ways like Variance, Semi-Variance and VaR. Using optimization heuristics like Simulated Annealing, Tabu Search, and Genetic Algorithm, Radix demonstrated the ability to optimize the portfolio while honoring various hard and soft constraints like budget, holding sizes, trade limits, cardinality, short sales, sector/country limits, turnover, activity level, and beta.
