Introduction AlphaTower
AlphaTower is a quantitative manager focused on superior risk-adjusted returns for a prolonged period of time for our members. AlphaTower targets the realization of absolute returns. This means the fund does not attempt to follow any kind of benchmark.
The investment decisions are model driven, and will be dynamically managed. The model that is being used is designed to identify an optimal set and combination of relevant market factors.
Quality strategies search for companies of superior quality. We dislike stocks in a weak financial position. The distinction is made on the basis of quantifiable metrics such as a price-to-earnings and price-to- book ratio, dividend yield or volatility. While some criteria are generally recognized, the approaches can vary in other aspects. In all cases, however, it is a systematic and rules- based process.
Strategy
The AlphaTower strategy is characterized by:
- Low volatility: We select low volatility stocks, which are less sensitive to larger declines than stocks with high volatility.
- Value: Stocks are selected that are currently not popular (out of favor) and are very cheap in terms of operating profit versus net asset value of the share.
- Quality: Select high-quality stocks, so shares that have relatively little debt and stable earnings growth.
- Momentum: Select stocks that are in a relatively positive trend. The portfolio is evaluated on a monthly basis and adjusted if necessary. An attempt is made to limit the number of transactions in connection with transaction costs.