Alpha Hunter Portfolio Update (Feb 24 2023)
How I aim to consistently outperform the markets with lower risk
Summary
+1.70% annualized outperformance over S&P500 ETF with 59% lower risk than the S&P500 ETF using a scalable, (mostly) long-only, no-leverage, usually fully-invested, global large and mid-cap equity strategy.
Please see the introductory post on Alpha Hunter to understand it better.
Alpha Hunter Portfolio (Feb 24 2023)
Here are the portfolio characteristics as of Feb 24 2023:
Alpha Hunter Strategy Results
Here is a chart of the alpha generated vs S&P500 over time, net of all fees:
Since Jan 12 2022 till Feb 24 2023, Alpha Hunter has returned a time-weighted return of -11.57%, whilst the S&P500 has returned a time-weighted return of -13.47%, implying an alpha of +1.90%. This corresponds to an annualized alpha of +1.70%.
Here is a summary of key performance and risk statistics, net of all fees:
SPX500 Total Return Index, Berkshire Hathaway Class B stock, and Vanguard’s Total Stock Market Index are used as benchmark comparisons
Alpha Hunter has a -0.3% lower value-added monthly index (VAMI) vs benchmarks
Alpha Hunter’s performance comes with significantly lower risk:
Much lower standard and downside deviations; only 68% as volatile as the benchmarks
Much lower max drawdown; only 73% of the benchmarks’ max drawdowns
Low 0.40s beta; ~59% lower volatility than the market
Alpha Hunter’s Information Ratio (IR) vs the S&P500 Total Return Index is +0.02. Given that the strategy invests mostly in large-cap global stocks, this places the performance of Alpha Hunter better than the median of funds:
Source: Informa Investment Solutions
Fundamental Analysis of Positions, Ideas
I regularly publish fundamental analyses here on Seeking Alpha. I invite you to read this to get a better business understanding of various positions (past or current).
Disclosure
Solutions must fit the circumstances and conditions present in the goal or problem. It is impossible to prescribe a specific solution without knowing these circumstances and conditions! This is a general principle.
I do not know our readers’ circumstances or conditions present in their financial status and goals. Hence, I cannot prescribe or recommend any specific solution. Therefore, please view what I write about simply as my humble opinion, which you are free to consider or not consider in whatever way you wish.