Alpha Hunter Portfolio Update (Jul 7 2022)
SEE ACT WIN's flagship strategy to consistently outperform the markets with lower risk
Summary
Consistent 13.2% annualized outperformance over S&P500 ETF with 57% lower risk than the S&P500 ETF using a highly scalable, long-only, no-leverage, fully-invested, global large-cap equity strategy. On-track to create one of the best risk-adjusted investing records of all time.
Please see the introductory post on Alpha Hunter to understand it better.
Alpha Hunter Portfolio (Jul 7 2022)
The portfolio is moved back into full equity exposure now.
Here are the portfolio characteristics as of Jul 6 2022:
Alpha Hunter Strategy Results
Here is a chart of the alpha generated vs S&P500 over time, net of all fees:
The steep fall in alpha during the middle of March 2022 is not fully attributable to the Alpha Hunter strategy as this was due to an allocation mistake wherein the portfolio was ~60% in cash for too long when the market was rebounding sharply. The impact of this mistake was a ~5% erosion in alpha. It was a risky deviation from the ‘Fully-invested almost all of the time’ characteristic of the strategy. We do not expect such mistakes to occur again.
Since Jan 12 2022 till Jul 6 2022, Alpha Hunter has returned -12.24%, whilst the S&P500 has returned -17.80%, implying an alpha of +5.56%. This corresponds to an annualized alpha of 11.78%.
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 outperforms other benchmarks; ~5.7% higher value added monthly index (VAMI)
Alpha Hunter’s outperformance comes with significantly lower risk:
Much lower standard and downside deviations; only 67% as volatile as the benchmarks
Much lower max drawdown; only 74% of the benchmarks’ max drawdowns
Low 0.40s beta; ~55% lower volatility than the market
Alpha Hunter’s Information Ratio (IR) vs the S&P500 Total Return Index is 0.57. Given that the strategy invests in large-cap global stocks, this places the performance of Alpha Hunter close to the top 5%ile of funds:
Source: Informa Investment Solutions
Disclosure
Solutions must fit the circumstances and conditions present in the goal or problem. Without knowing these circumstances and conditions, it is impossible to prescribe a specific solution! This is a general principle.
We do not know our readers’ circumstances or conditions present in their financial status and goals. Hence, we cannot prescribe or recommend any specific solution. Therefore, please view what we write about as research that we are sharing with you, for you to consider in however you approach decision making.