The Alpha Strategy is an aggressive investment strategy consisting primarily of individual equities with an options overlay. The overall objective is to outperform the global equity market (Spliced Total World Stock Index) 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.

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.