Our investment strategies
All AlphaSimplex strategies are designed to be risk-smart. They employ a proprietary risk management mechanism known as AdaptiveVolatility Management™, or αvm™, that modulates portfolio positions over time to adapt to changing market risk with the goal of containing losses and/or enhancing return. Please note that AlphaSimplex also advises mutual funds distributed through Natixis Global Asset Management. For information on these funds, please visit www.ngam.natixis.com.
QGM is a multi-model quantitative global macro strategy that employs a diversified set of models across different styles, markets, and trading horizons. The strategy's component models have been developed over a number of years and a diverse set of market environments. The strategy incorporates an adaptive optimization process to dynamically weight component markets and models to most effectively exploit current market conditions.
GLOBAL ALTERNATIVES is a broadly diversified risk-controlled portfolio that harnesses the consensus wisdom of the hedge fund industry with regard to asset allocation among broad liquid markets. The strategy uses sophisticated statistical techniques to identify the liquid common markets that seem to explain the performance of hedge fund managers - an investor group that is generally considered to be relatively smart and adept - and to then use this insight to provide an attractive risk-adjusted set of returns with tightly controlled volatility. This strategy is intended to provide similar diversification benefits as a fund of hedge funds, and is well-suited for large institutional investors who cannot otherwise find adequate capacity among hedge fund managers, as a liquidity buffer with an otherwise less liquid portfolio, and for smaller investors who would not otherwise have access to the diversification benefits of hedge funds because of minimum-investment requirements.
MANAGED FUTURES is a multi-model, multi-horizon trend-following strategy similar to CTA hedge fund strategies but without performance fees. Generally, such strategies have provided effective diversification to portfolios because they offer a low long-term correlation with equities and their best performance has typically occurred during periods of market dislocation when returns on traditional risk assets such as stocks, credit, and illiquidity have been negative.
TAIL-RISK HEDGING is a futures-based overlay solution designed to contain a portfolio's downside risk or to enhance a portfolio's risk-adjusted return. Insights gained from our research into the dynamic relationship over time between equity returns and volatility are applied to each client's benchmark portfolio to effectively modulate equity exposure/risk commensurate with whether risk is likely to be rewarded.
RISK PARITY PLUS is a risk-based approach to dynamic asset allocation. Although Risk Parity is the strategy's default allocation across assets, a regime-switching model based on both market and macro factors can frequently result in the strategy's asset allocation being markedly different from that of a risk-parity portfolio.