Hedged Equity = Capital Appreciation + Downside Protection

If you are grappling with keeping your clients invested in stocks while overcoming their fear of market declines, you have come to the right place

Always invested. Always hedged.

We call our strategy ‘hedged equity’ because in two simple words, it describes what we do: we purchase equities and we hedge.

Here's how it works:

  • The equity portfolio attempts to generate excess returns;
  • The hedging program is designed to reduce portfolio losses during volatile equity market corrections

The best part of our portfolio: Since inception, we have generated enough excess return from our stock selection to fund the cost of the hedges. The result is a strategy intended to produce competitive returns and risk/return ratios.

It's that simple (and reliable)!

View our performance

Decoding Sentiment: How we generate alpha?

Investing in a portfolio of stocks that go on to beat Wall Street expectations, at a rate higher than market average, has historically generated superior returns

Improve your stock returns by uncovering companies with Revenue upside

Accurately estimating earnings growth into the future is the name of the game in stock picking. Wall Street analysts continue to drive the market's expectations of a company's forward earnings potential, and that in turn drives its stock price.

At Alpha DNA, the investment science of building stock portfolios with smarter estimates is transformative:

  • We access alternative data that insightfully augments traditional financial information
  • We deploy machine learning to discover alpha-generating patterns within the data

Our core research is focused on decoding sentiment as a proxy for tailwinds in customer demand and identifying the companies most likely to be rewarded for that improving sentiment.

Simply put, we try to be a few steps ahead of the ‘average’ analyst estimate. And that delivers the alpha in our equity portfolios, consistently.

View our source of alpha

Avoiding Big Losses: How we hedge your downside?

Stop talking your clients 'off the ledge' during market corrections. Consider a strategy designed to keep them from getting there in the first place.

Building a resilient portfolio.

In risk management, true north is deploying Hedges. Hedges can produce effective downside protection from market declines.

We manage hedges deploying options in your portfolio thru a Target Delta Hedging Program. This is just a technical way of saying that we manage the hedges so you always have an appropriate amount of protection.

Buying hedges for your portfolio is similar to purchasing homeowner’s insurance. You pay a regular premium for home insurance that reflects the risk profile for your home such as risk of wild fires, lack of fire stations, or location in a flood zone. Similarly, hedging costs reflect the fluctuating risk profile of your equity portfolio based on changing market conditions such as increased volatility.

We manage the cost of these hedges to make sure you have the most optimal hedging program. You don't need to be an options expert to understand what we build in your client's portfolio. We play the role of options expert for you.

Learn more about hedging

The Alpha DNA advantage: Buy Smarter and Hedge

  • Provide your client the growth potential of equity markets
  • Protect portfolio from major drawdowns
  • Reduce client temptation to time the market
  • Overcome your client’s fear of material portfolio losses
  • Reduce risk without fixed income or duration
  • Don’t trade equity risk for rate risk

Our reliably repeatable approach to balanced portfolios

With either our separate managed accounts (SMA) or our exchange traded fund (ETF), we believe you get the best of two investment approaches: a market-beating long portfolio and a downside hedge.

And its all delivered from a research platform that considers a fuller range of data and utilizes more advanced analytics intended to create a superior approach to identifying winners and losers consistently.

Re-think your balanced portfolio approach and choose Alpha DNA designed to deliver consistent capital appreciation with prudent downside protection for your risk-conscious clients.

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