Investment philosophy

Alpha active management

 

Alpha Fund Managers advocates active investment management and holds the view that in-depth research and analysis can identify investment mangers who can beat the market consistently. Alpha Fund Managers believe 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.

research

 

Alpha Fund Managers also believes in the role of manager and style diversification which, when done properly, will  provide consistently superior results to investors over a full investment cycle without taking additional risk.

 

Through the use of active management strategies, Alpha Fund Mangers seeks 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 Manager’s 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.

 

Core Investment

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 competitively priced framework to deliver out-performance whilst managing risk.

 

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 portfolio relative to a benchmark.

Alpha and beta porfolio

 

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. We realise that capital preservation during inevitable market declines can be of greater long term value to clients’ 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.

network cash

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 out perform during every period.