A Broad Array of Active Strategies

The financial crisis and subsequent recovery has highlighted the reality of regime effects on economies and financial markets. Investors today are seeking managers who understand regime behaviour and have the strategies to anticipate or hedge these time-varying environments.

Stemming from a strong research culture, Disciplined Alpha conducts extensive research to develop new strategy prototypes and enhance our existing products. As the firm continues to expand its multi-strategy capabilities, new product areas are considered for our research agenda only after careful deliberation of client needs, intellectual innovation, and operational capacity.



Regime based Long Short Diversified Strategy

This product is a time-varying risk aversion strategy based on macroeconomic regimes. The product takes long and short exposures to liquid equities in a US context, with a Global implementation under development. The investment rationale for the product is that diversified exposures to fundamental factors add value over time, however there are long periods (or “regimes“) when one style dominates as a result of investor’s changing risk preference. These regimes can be tracked and anticipated using a real-time, forward-looking regime model.

Regime based Long Short Tech/ Media/ Telecomm Strategy

This unique approach combines Disciplined Alpha's macroeconomic regime model with fundamental analysis in the Techhnology and Telecommunication Services Sectors and the Media Industry (TMT). The strategy employes a proprietary methodology specifically tailored to highlight stocks within TMT which are experiencing meaningful inflection points in their fundamentals and investor sentiment. Bottoms up fundamental analysis is used to determine the validity of these inflection points, and assess the short and long-term prospects for the potential investment. In parallel with this stock selection methodology the strategy uses Disciplined Alpha's macroeconomic regime model, specific to the TMT markets, to tilt the portfolio construction toward offensive/neutral/defensive positioning.

Stable Growth Strategy

Most investors agree that earnings drive stock prices, however, in portfolio construction, these same investors use historical returns as the primary input to their risk models! SoGARP represents a major investment strategy innovation in that it optimizes earnings instead of returns. Additionally, SoGARP addresses the reality of regimes by creating a strategy that is regime-resilient or robust to the prevailing regime. Using our proprietary Stable Growth at a Reasonable Price multi-objective optimization technique, we aim to generate a portfolio with a bond-like earnings stream, which delivers more growth than the market, but trades a comparable multiple to the market. The SoGARP approach allows us to generate alpha in the long-only or long/short space for the main equity universes: Global, North America, Europe and Emerging Markets.