Customized Strategies
Tactical Alpha
Tactical Alpha: Capital Appreciation with Lower Volatility
SSI's Tactical Alpha strategy allows investors to take advantage of all of SSI's core competencies, including: Long/Short Equity, Hedged Convertible and the Firm's proprietary Tactical Alpha Asset Allocation Model.
SSI deploys 95% of the portfolio's capital based on the relative valuation of its Long/Short Equity and Hedged Convertible strategies. The remaining capital is invested in Equity Indices during periods of perceived upward bias as identified by SSI's proprietary Tactical Asset Allocation model. Exposure during the Tactical investment periods is limited to a maximum of 35%. In its history, the strategy has captured a majority of the equity market's positive performance with less than one-third of the equity market's risk.
SSI has successfully managed tactical strategies using a similar investment process since 2005. 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.
Tactical Alpha Hedge Strategy
- SSI's Tactical Alpha Hedge Strategy is designed to earn 600 basis points above 90-day Treasury Bills. The Tactical Component enhances the returns generated from both SSI's Long/Short Equity and Hedged Convertible strategies by tactically investing in S&P 500 Index and Russell 2000 Futures. Based on pattern recognition, the Tactical Component is applied during periods of perceived upward bias as identified by SSI's proprietary Tactical Asset Allocation model. Utilizing limited and occasional exposure to equity markets, the portfolio team employs a modest tactical position approximately 30% of the time, exhibiting a beta, or equity market sensitivity of 0.12 on average.
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