A different approach to core portfolio investments
It is close to impossible for individuals to be the idealized “buy and hold” long-term investors they know they should be given the tools that have been available to them. Investors understand that attractive long-term returns require long-term investment. But, after their retirement portfolios experience a significant decline in value, their financial survival instincts make it extraordinarily difficult for them to keep their remaining wealth at-risk in the same portfolio strategy. In fact, the less wealthy investors feel, the lower their tolerance for risk and the more likely they are to abandon their investment strategy.
αvm®: The value of managing risk rather than chasing returns
By actively managing portfolio risk, AlphaSimplex portfolios aim to make it easier for individuals to stay invested and to achieve the potential returns associated with long-term investing. Rather than passively accepting whatever level of risk the markets may offer, we actively adjust our market positions to provide investors with a more consistent amount of risk within our strategies. By offsetting changes in market risk through AdaptiveVolatility Management® (αvm®), we believe we can place guardrails on the variability of risk and the potential for sudden and extreme loss, enabling investors to stay focused on the long term.
You Can’t Manage What You Don’t Measure
Is Volatility Happening to You?
Why is Volatility Important?
Managing Portfolio Risk
Liquidity is Key
- The Adaptive Markets Hypothesis: Market Efficiency from an Evolutionary Perspective [PDF]
- Warning: Physics Envy May Be Hazardous To Your Wealth [PDF]
Using dynamic risk-control technology, AlphaSimplex provides adaptive, volatility-managed investment strategies to help investors weather the market’s most challenging periods in order to realize positive long-term return potential.