ALPHERATZ CAPITAL:
CREATING
OPPORTUNITY
Successful Investments
ABOUT
The Firm employs a global macro long-short strategy focused on directional trades. We strongly believe that global macro strategy is particularly effective in time of high volatility and uncertainty. We capitalize on market inefficiencies through a multi-factor approach by timely adopting to fast changing market circumstances.
What makes US different from others:
OUR INVESTMENT PROCESS relies on an internally developed formula that incorporates cycle recognition, fundamental analysis, technical trends, and socionomics. This comprehensive approach allows us to capitalize on market inefficiencies by adeptly adapting to rapidly changing market conditions.
MONEY MANAGEMENT: In contrast to those who feel the need to keep their funds constantly invested, we recognize the significance of maintaining cash reserves or cash-related instruments, especially during periods of escalating geopolitical tensions worldwide. This strategic flexibility empowers us to swiftly seize emerging opportunities.
CONTRARIAN THINKING: While the majority tend to follow the crowd, we champion contrarian thinking. Daring to challenge conventional wisdom often yields more significant success than merely adhering to popular or hyped opinions.
PATIENCE: You are supposed to put capital at work almost the whole time as it is very hard to justify a setup where you sit on your hands and do nothing. But the truth is that there is a time to be long, a time to be short and a time to go fishing or play gulf otherwise to be flat.
UNBIASEDNESS: Being flat allows you to assess markets without emotional biases. That helps us to execute our investment strategy objectively. In our approach, decisions are driven by facts rather than personal preferences or biases, ensuring a clear and rational investment process.
ALPHERATZ CAPITAL INVESTMENT PROCESS
The Firm investment process is driven by multi-factor approach allowing us notably reduce risks and be well position to global chaos.
- Where in the business cycle do we believe an economy/financial markets are;
- We distinguish two core approaches in our asset allocation based on our business cycle view;
- Money Management is in the center of our positioning, and we consider all types of risks including infrastructure ones.
Cycle recognition is based on both fundamental, technical, and socionomics. Socionomics: identify social mood through sentiment analysis of news media content, twitter feeds, polls, and surveys. Socionomics posits that changes in mass psychology occur before the major shifts in the economy or society and thus it provides a powerful tool to predict them.
Asset allocation is based on two core approaches: Broad market portfolio and Trading portfolio. Broad market portfolio depends on our cyclical positioning; thus, it can be in a risk-off or a risk-on mood. A trading portfolio is based mainly on the fact that there are always 3 to 5 big trades in a year that can generate above-average returns. It is formed and managed by in-house wave approach. Trading portfolio is focused mainly on most liquid instruments: soft & agricultural commodities, energy, FX, Stock Indexes, Bond futures.
Idea generation is based on top-down opportunities. We are looking for markets, sectors, names where valuations/prices look most likely dislocated from long-term fundamentals/averages. We seek the best opportunities regarding risk-reward. Assessment of upside risk vs downside risk. We use both fundamental and technical analysis depends on Portfolio and type of assets.
Money Management is at the center of our positioning. We look carefully at diversification, liquidity, analysis, risk reward, in-house trade set-up for margin instruments, counterparty risk, credit risk, infrastructure risk etc. Position sizing based on risk-reward, conviction, liquidity, and existing portfolio characteristics. Avoiding large permanent losses of capital is crucial for sustaining good performance. Cash and Patience are crucial for our money management approach.
TEAM
Innovation Spirit
"Our goal at Alpheratz Capital is not only to preserve client's assets but make money during this tricky time. We get paid to make returns, not to gather assets. We understand that success takes hard work, dedication and sheer perseverance.
We give our clients personal guidance from the very first stages and provided them with all the resources and expert advice they need to feel comfortable and share our beliefs and visions.
We are entrepreneurs and we are highly flexible and open-minded to all challenges. We use the state-of-the-art methods in running our Firm. We generate ideas that make an impact in the industry and beyond.
The Firm is a team of experienced market professionals. We have faced several global and regional crises. We are well experienced in turbulent and unpredictable Emerging Markets making us well position to rising global chaos."
Valentin Egorov, PhD, Founder & CIO
