Alpha Hunter Portfolio Update (Mar 13 2023)
How I aim to consistently outperform the markets with lower risk
Summary
+4.13% annualized outperformance over S&P500 ETF with 60% 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. World-class Annualized Information Ratio of +3.41.
Please see the introductory post on Alpha Hunter to understand it better.
Alpha Hunter Portfolio (Mar 14 2023)
Here are the portfolio characteristics as of Mar 13 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 Mar 13 2023, Alpha Hunter has returned a time-weighted return of -12.48%, whilst the S&P500 has returned a time-weighted return of -16.61%, implying an alpha of +4.13%. This corresponds to an annualized alpha of +3.52%.
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 +4.9% lower value-added monthly index (VAMI) vs S&P500 Total Return Index
Alpha Hunter’s performance comes with significantly lower risk:
Much lower standard and downside deviations; 35% lower downside volatility vs S&P500 Total Return Index
Much lower max drawdown; 21% lower max drawdown vs S&P500 Total Return Index
Low 0.40s beta
Alpha Hunter’s Annualized Information Ratio (IR) vs the S&P500 Total Return Index is +3.41. It does not matter which way you cut it; this places the performance of Alpha Hunter well within the top percentile of funds. In fact, I have not seen a better Annualized Information Ratio by any fund manager. Please let me know in the comments if you find anyone with a better metric here.
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.