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Approach and Process

To AlphaSimplex, risk management means seeking to contain the potential magnitude of losses, consistent with investor expectations.

AlphaSimplex incorporates dynamic risk management systems into all of its strategies. The firm’s proprietary risk models are designed to detect any change in portfolio risk, allowing for daily monitoring and management of portfolio positions. AlphaSimplex strategies aim to help investors stay invested, even through the market’s most challenging periods.

The value of managing risk rather than chasing returns

AlphaSimplex strategies help investors to stay invested even through the most volatile periods of market dislocation. Using dynamic risk-control technology, we seek to adapt our portfolios to changing levels of market volatility and take advantage of opportunities that may be present. Our research focuses on the dynamic relationship between risk and return in financial markets, and we offer AdaptiveVolatility Management® (⍺vm®), a capability designed to help shield investors from the disruptive effects of surging risk and extreme loss.

Instead of simply accepting the market’s current level of risk, AlphaSimplex adjusts the position sizes in our portfolios daily to help ensure that they stay consistent with investor expectations of portfolio risk. Combined with investment models designed to adapt to current market dynamics, this strives to manage investor expectations and deliver attractive long-term returns.