Alpha Active Management
Alpha Fund Managers advocates active investment management and holds the view that in-depth research and analysis can identify investment managers who can beat the market consistently. Alpha believes that these managers need to possess not only the right combination of experiences, skills and resources, but also the right sets of mentalities and motivations so as to beat the market with consistency.
Alpha Fund Managers also believes in the role of manager and style diversification which, when properly done, will provide consistently superior returns to investors over full investment cycles without taking additional risk.
Through the use of active management strategies Alpha Fund Managers seek to construct nimble portfolios that can moderate the volatility of the market, helping investors stay the course and benefit from the long-term gains of the market. When properly implemented, Alpha Fund Managers active management strategies should lessen an investor's exposure to declining markets, blunting the impact of bear markets and preserving capital and prior gains. The use of protectionist strategies during a market decline means you have more money to invest when the market heads upward.
Core / Satellite Portfolio Construction
The core-satellite approach to portfolio construction is a methodology used to combine actively managed funds (Alpha Funds) with index funds in a single portfolio. The appeal of this approach is that it seeks to establish a risk-controlled portfolio while securing the benefits of active management outperformance.
Alpha Fund Managers believes the Alpha Fund series is the perfect complement to a low cost Beta strategy in client's portfolios. A combination of Beta and Alpha strategies can provide a powerful, low investment cost portfolio, with investors paying the lowest cost possible for quality Beta (indexing) Managers or by using ETFs and Alpha active investment management.
Alpha / Beta Portfolio
What is Alpha and Beta?
Alpha - A portfolio's risk-adjusted excess return versus its effective benchmark.
Beta - A measure of the volatility of a security or a portfolio relative to a benchmark.
Typically, the goal of an active investment manager is to provide Alpha or above market returns to clients investment portfolios. Alpha Fund Managers take a risk adjusted view on providing Alpha to client portfolios: that is we do not chase absolute return Alpha at a higher probability of investment capital loss. Our aim is to provide risk adjusted Alpha to clients' portfolios. Yet capital preservation during inevitable market declines can be of greater long term value to client's portfolios than chasing absolute alpha return.
Alpha Fund Managers believes Beta or market return through low cost, quality providers via indexing or ETFs, is a cornerstone of all investment portfolios. This allows for sensible diversification and risk reduction strategy for periods in markets conditions where active management is inefficient in providing Alpha.
Multi-Asset Class Investing
Multi-asset class investments increase the diversification of an overall portfolio by distributing investments throughout several classes. This reduces risk (volatility) compared to holding one class of assets, but might also hinder potential returns.
For example, a multi-asset class investor might hold bonds, stocks, cash and real property, whereas a single-class investor might only hold stocks. One asset class might outperform during a particular period of time, but historically no asset class will outperform during every period.