The Alpha Strategy is an aggressive investment strategy consisting primarily of individual equities with an options overlay. The overall objective is to outperform the U.S. equity market (S&P 500) over the long run. This strategy uses fundamental analysis to determine mispriced securities to take advantage of and typically will be fully invested in individual company equities. The primary focus is value and growth at a reasonable price (GARP). It may at times hold a portion of the portfolio in cash and may hedge depending on the market environment. The options component of the strategy involves using options to both grow and protect wealth.

We don’t chase meme stocks, bubbles, or other nonsense. We stick to our valuation discipline at all times and often tend to be contrarian in the market. We don’t use AI to pick stocks or do anything esoteric. We believe our ability to deviate from herd mentality has allowed our unique strategy to be unlike anything others offer and historically outperform the market. From a basic perspective, we are constantly looking for what we consider to be an edge in the market. Our historical outperformance is from consistent singles, doubles, and triples using a repeatable process, not from getting lucky on a few meme stock grand slams that went parabolic for no fundamental reason. Not every edge we identify works out profitably. Periods of underperformance have happened in the past and will happen in the future, but over time the law of large numbers suggests our strategy is a winning strategy, and that is seen in our strong historical outperformance. Past performance is no guarantee of future results. This is an aggressive portfolio strategy and the risk of loss of principal is higher than most investment strategies. Clients should be prepared to bear this risk.

Due to the active nature and level of sophistication associated with the Alpha Strategy, it is only offered to qualified clients ($1.1M minimum) such as high net worth individuals and institutions. The total fee is a 1% AUM annual fee along with a 20% outperformance fee (performance above the designated benchmark) calculated monthly. For instance, if the Alpha Strategy gains 4% for the month and the benchmark gains 4%, there is no outperformance and thus no outperformance fee. If the Alpha Strategy gains 7% and the benchmark gains 2%, there is 5% of outperformance and thus there is a 1% outperformance fee (20% of the 5% of outperformance). A high watermark is used to ensure outperformance fees are not double counted. There will be no outperformance fee invoiced if the strategy doesn't outperform its benchmark. If you aren’t receiving superior performance then you shouldn’t be paying for it.

Click here to see the historical performance of the Alpha Strategy.