Governance

Structure, control and the research function.

Who owns what, what the research function is required to know, and the gate every deliverable passes before release. Names no individual other than the Manager.

Entity and control

Marnello LLC

ItemValue
EntityCalifornia limited liability company, entity number B20260348944
Formed30 July 2026
Registered agentNorthwest Registered Agent, Inc., Sacramento, California
Principal officeLos Angeles County, California
Tax classificationLimited liability company electing to be taxed as a corporation
ManagerJingchang Song, Manager
Commercial launchQ1 2027
Authority

Manager-managed.

Marnello LLC is manager-managed. The Manager holds commercial authority — pricing, contracting, client relationships — and the pre-release approval of every deliverable and every library version. No deliverable is published without the Manager's recorded approval, and no methodology change takes effect until its changelog row carries an approval date. The research function has no client-facing duties and no performance-linked compensation, so that validation stays adversarial to the commercial interest in a favourable result.

Division of work

Function, owner, evidence.

FunctionOwnerEvidence on this site
Commercial ownership: pricing, contracting, client relationshipsManagerProducts and terms; Contact
Pre-release approval gate for every deliverable and library versionManagerGovernance record on the last page of each deliverable; publications; changelog
Factor construction and validationResearch functionValidation record; methodology
Point-in-time data architecture and integrity verificationResearch functionCapability ledger; demo-build disclosures on every PDF page
Portfolio evidence and attribution reportsResearch functionEvidence
Simulation and cost modellingResearch functionCost sensitivity tables in the validation record
Documentation and governance recordsResearch functionMethodology appendices; changelog
Methodology support for client questions, routed through the ManagerResearch functionInsights
Research function

Duties, required knowledge, published output.

The research function requires a degree in a field whose core curriculum is econometrics, statistical inference and stochastic modelling applied to financial data — financial engineering, quantitative finance or statistics programmes. Fama-MacBeth validation, out-of-sample discipline, and point-in-time data integrity are not skills acquired on the job. Staff biography will be published at commercial launch.

Duty (share of time)Required knowledgePublished output today
Factor construction and validation (35%)Cross-sectional asset pricing; Fama-MacBeth regression and its standard-error treatment; out-of-sample design; multiple-testing awarenessFactor Library Validation Record; per-factor PASS / MONITOR / FAIL results
Point-in-time data architecture and integrity verification (20%)Survivorship-free universe construction; as-reported versus restated data; corporate-action adjustment; reconciliation and audit of data vendorsDemo-build disclosures on every PDF page; capability ledger
Portfolio evidence and attribution reports (15%)Time-series regression; covariance-based variance attribution; concentration measurement; confidence intervals on small samplesPortfolio Evidence Report specimen; Manager Attribution specification
Simulation and cost modelling (15%)Decile portfolio simulation; turnover measurement; transaction cost sensitivity; simulation designCost sensitivity tables in the validation record
Documentation and governance records (10%)Reproducible research practice; version control; model documentation standardsMethodology appendices; methodology changelog; governance records
Methodology support (5%)Ability to explain each statistic in writing to a non-specialist, without expressing a view on any securityInsights; frequently asked questions

Planned annual workload, Year 1

DutyShareHours
Factor construction and validation35%560
Point-in-time data architecture and integrity verification20%320
Portfolio evidence and attribution reports15%240
Simulation and cost modelling15%240
Documentation and governance records10%160
Methodology support5%80
Research function, total100%1,600
Manager, commercial hours (Year 1)1,032

The research function is planned at 1,600 hours a year across the duties above; the Manager's commercial time is planned at 1,032 hours in Year 1. Neither figure includes the other's work.

Model governance gate

  • Specification: definition, inputs, parameters, estimation window
  • Validation record: out-of-sample results, t-statistics, cost sensitivity, status under the in-force rule
  • Version history: a dated changelog row with rationale
  • Approval by the Manager, recorded with its own date on the document and in the ledger
  • Monitoring: the validation record is reissued quarterly and on every library change

Approval by the Manager is a documented release gate, not an independent audit.

Continuity

Every deliverable is reproducible from the engine source, the cached data and the ledger row that names its library version and data date. Research is documented so that a qualified successor can reproduce it rather than resident in one person's head; documentation is a defined share of the research function's time.

Attribution

Work product is attributed to Marnello LLC, produced under the direction of the Manager (Jingchang Song). Individual staff are not named on deliverables before commercial launch.