Customized Strategies
Portable Alpha
Portable Alpha Strategy: Compelling Alternative to Traditional Investments
SSI's Portable Alpha strategy takes a building block approach to generate index and excess returns by combining an alpha generating source with an overlay of Index Futures. Portable alpha strategies seek to generate excess returns that are neither style nor market dependent, increase diversification and are known to protect capital in market declines. This strategy also enables the beta exposure to be adjusted without affecting the underlying alpha component.
SSI's Portable Alpha strategy uses a small amount of capital to obtain the benchmark return with an index futures position or swap, leaving 95% of the capital to be employed in an alpha generating source. SSI's alpha generating sources include: Hedged Convertible, Long/Short Equity or Market-Neutral strategies. The overlay indexes typically used include: the S&P 500 Index, Russell 1000 Value Index, the Lehman Brothers Aggregate Bond Index or the MSCI EAGE Index.
SSI has successfully managed portable alpha strategies using a similar investment process since 1991. In addition, SSI's expertise in market neutral strategies and short selling has been honed by the firm's 37 years of experience in the alternative marketplace.
