We are excited to announce that Alpha Theory was recently featured in Marc Rubinstein’s newsletter, Net Interest! In the article, Marc discusses the significance of position sizing in investment strategies and how Alpha Theory can be beneficial. "According to Alpha Theory, returns on long positions on which clients carry a price target outperform those with no target by almost 5%; on shorts, the differential is 7%. Price targets aren’t an exact science, but they can help inject some order into a portfolio." Check out the full article here: https://lnkd.in/euFAtzZy #positionsizing #investmentmanagement #portfoliomanagement
Alpha Theory
Financial Services
New York, NY 1,974 followers
Investment management platform designed to help fundamental managers Be Better.
About us
Portfolio management is the balancing act of ensuring idea quality and position size are highly correlated while adhering to risk and exposure constraints. Alpha Theory was built by a fundamental hedge fund analyst that wanted a better way to translate the firm’s high-quality research into a high-quality portfolio. Two decades later, the results prove that better discipline leads to better returns. Alpha Theory is a leading portfolio management and decision process improvement platform for global investment managers. It gives investment teams a framework to fully leverage their research and outside data streams to efficiently size positions and identify uncaptured alpha in real-time to drive performance. Alpha Theory clients work hand-in-hand with an experienced team of process improvement experts and have access to specialized data scientists who provide data-driven insights to optimize performance. Today, over $100B in assets are managed on the platform. For more information, please visit www.alphatheory.com.
- Website
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http://www.alphatheory.com
External link for Alpha Theory
- Industry
- Financial Services
- Company size
- 11-50 employees
- Headquarters
- New York, NY
- Type
- Privately Held
- Founded
- 2006
- Specialties
- Portfolio Management, Risk Management, Behavioral Finance, Decision Making, Position Sizing, Hedge Fund, and historical analytics
Locations
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Primary
Get directions
205 East 42nd Street
19th floor
New York, NY 10017, US
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Get directions
5701 Westpark Drive
105
Charlotte, NC 28217, US
Employees at Alpha Theory
Updates
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By steering clear of mental pitfalls and sticking to a disciplined investment process, you could see your returns improve by 4x. Alpha Theory's process-driven software suggests position sizes based on an asset's expected value and constraints set by clients, enabling them to build a repeatable strategy. Read more about our research in the article below: https://lnkd.in/ecKxBFym #portfoliomanagement #investmentmanagement
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Alpha Theory and CenterBook Partners LP go International! Cameron Hight, Pericles Ducas, and Chris White had a great time visiting London last month. Not only did they have over 23 meetings set up, but they also got to celebrate Pericles Ducas's birthday!
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At Alpha Theory, we know applying a disciplined process to sizing positions increases returns. Our research shows that a portfolio using Alpha Theory’s optimal position sizing outperformed clients’ actual sizing by an average of 4.3% Our customizable rules engine generates probability-weighted optimal position sizes based on custom firm-level rules, price targets, conviction levels, and other inputs to build a portfolio with the highest potential return. Learn more about our platform solutions here > https://lnkd.in/gSg-SanN
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Cameron Hight and Justin Olson give us an update on the Alpha Theory Stock Selection Index performance in the article below:
In November of 2023, we introduced the Alpha Theory Stock Selection Index as a means to show off the stock selection skill of Alpha Theory managers. In the article below, Justin Olson and I provide an update on the all-time performance of the index and highlight performance over Q1 of 2024. #stockpicking #portfoliomanagement #investmentmanagement
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Coming Soon! Get ready for the debut of our video series, "Cam's Corner," with insightful content from our CEO, Cameron Hight. Join us as we dive into original insights, thought leadership, and portfolio management strategies. Be on the lookout for our first video next month! #portfoliomanagement #investmentmanagement
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Alpha Theory helps investment teams build a unique portfolio-construction model with their data, reducing the impact of emotion and eliminating guesswork to make position-size decisions a repeatable, disciplined process. But don’t just take it from us: “I wish we had found AT years ago. I know there are a ton of insights and value we missed by not compiling our price targets and other modeled data.” - Long/Short Hedge Fund Portfolio Manager #clientquote #portfoliomanagement #investmentmanagement
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What is your 6th best idea? Is it your 6th largest position? Many portfolio managers don’t have a readily available answer. Meaning, there could be alpha-harming mistakes in their portfolio. This is where Alpha Theory comes in. Watch our video below to see how Alpha Theory helps managers instill a disciplined investment process and reduce bias and mistakes: #investmentmanagement #portfoliomanagement
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We have been providing original insights and thought leadership on the Alpha Theory blog since 2006. Be a part of the Alpha Theory Ecosystem and subscribe to receive our monthly blog > https://lnkd.in/ec4MyTNc #portfoliomanagement #thoughtleadership #investmentprofessionals
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Alpha Theory reposted this
For decades, Michael Mauboussin has provided some of the most thought-provoking, well-researched insights on the investment process of fundamental managers. Michael’s book, “More Than You Know” was a major influence for me during the development of Alpha Theory. In our newest blog, I summarize Michael's recent appearance on the Capital Allocators podcast with Ted Seides where he discussed the Decision Aids of quant and fundamental investors. Read more below: #investmentprocess #fundamentalinvestors
Mauboussin: The Two Decision Aids that Fundamental Investors Should Use…But Often Don’t
Cameron Hight on LinkedIn