INVESTMENT PROCESS
Alpha Index
A Disciplined Institutional Approach
T-1's strategic focus on active asset management is designed to manage investment risk and provide more consistent returns. Our principles guide our disciplined approach, offering investors a high level of diversification across multiple asset classes.
Analysis & Evaluation
The genesis of each of our investment strategies are original client mandates for their given portfolio. The Alpha Index mandate was to create a universe of companies that are active in today's market environment.
Theoretical Concepts
Our main motto is to "manage volatility" in our various strategies.
We produced a set of stocks measuring sentiment and short-term movement of the underlying companies. In keeping with our mandate we created a list of companies whose characteristics at their core are on a "bullish" trend.
We filter the original list of over 2,000 companies eventually down to our core list of 25 companies. We calculate the daily risk parameters of each company and then sort the companies by their risk levels vs. potential returns.
Quantitative Portfolio Formation
Utilizing T-1's proprietary quantitative portfolio construction techniques, our goal is to maximize returns and minimize cross-correlation between underlying companies.
​
​
​
Trading Methodolgy
Once a listing of companies are produced, a process of final analysis and evaluation is applied to assure the listing of 25 companies are viable.
​
Approved stocks are purchased on a weekly basis and held for five trading days. On a weekly basis, after applying T-1's investment procedures, the portfolio is re-balanced to stay within investment guidelines. A new grouping of companies will purchase for the upcoming week.
Risk Management Maintenance
Monitor portfolio to ensure that it stays within the stated limits of its quantitative risk metrics and qualitative risk guidelines.