Alpha Hunter Portfolio Update (Mar 9 2023)
How I aim to consistently outperform the markets with lower risk
Summary
+3.79% 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 (Mar 10 2023)
Here are the portfolio characteristics as of Mar 9 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 9 2023, Alpha Hunter has returned a time-weighted return of -10.13%, whilst the S&P500 has returned a time-weighted return of -14.54%, implying an alpha of +4.41%. This corresponds to an annualized alpha of +3.79%.
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 +1.9% 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; ~60% lower volatility than the market
Alpha Hunter’s Information Ratio (IR) vs the S&P500 Total Return Index is +0.16. 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.