Investment Strategies
Portable Alpha Strategy
An unlevered synthetic approach to outperforming a benchmark. The portfolio consists of hedged arbitrage positions such as convertible bonds and preferred stock, warrants and options in combination with the respective underlying common stocks and straight bonds with an index futures overlay to gain exposure to a particular benchmark. Performance is expected to be consistent with each quarter's return exceeding the benchmark. Vehicles available: separately managed accounts and commingled funds. For performance, please refer to the following Composites which can be found in the Investor Login section of the site: Enhanced Index, Enhanced Bond Index, Enhanced Mid Cap, Enhanced Cash, Enhanced Multi-Index and Commodity Index Composite.
Absolute Return Strategy
A levered investment approach designed to produce consistent returns that are uncorrelated to bonds or equities. The portfolios consist of hedged arbitrage positions such as convertible bonds and preferred stock, warrants and options in combination with the respective underlying common stocks and straight bonds and can employ leverage of up to 4-to-1 depending on the account. Performance should approximate the long-term return of equities with lower overall volatility. Vehicles available: separately managed accounts and commingled funds. For performance, please refer to the Leveraged Arbitrage Composite, which can be found in the Investor Login section of the site.