Since 2007, Alpha Quant Models, a Cypress Capital Group offering, has been using an investment philosophy that acknowledges the inefficiencies of markets due to structural and behavioral influences. Its investment team uses a quantitative systematic investment process that identifies the links between company fundamentals and expected future performance. By utilizing enhanced factor analysis and its disciplined investment process, Alpha Quant actively manages models comprised of high conviction equities and targeted factor exposures.
Alpha Quant incorporates a proprietary lens seeking to create defensive indices with low volatility, while protecting against prolonged drawdowns and sharp market corrections, believing that its process has the potential to generate alpha and improve risk-adjusted performance. Its equity models are focused on fundamental analysis supported by empirical research and historical portfolio simulations, using a proprietary approach tested over time. It recognizes that low volatility, coupled with low price standard deviation, can create a false sense of security and unintended consequences. That is why its SmartALPHA Defensive strategies offer a balanced approach seeking protection and upside participation in specific market conditions.
The Alpha Quant portfolios incorporate a macro perspective understanding that stocks are not immune to the movements of their peers within a sector or industry. Alpha Quant screens keep the portfolios invested in sectors that have specific characteristics over market cycles. Including smart factors, such as cash flow, free cash flow yield, return on invested capital, and capital expenditure growth, leads Alpha Quant to stocks that not only exhibit low price volatility but historically have experienced low volatility within their business models. This expansion on low volatility alone has historically led to equity returns that are more defensive in nature, offering upside with expected strong protection to portfolio values in multiple investment environments over a market cycle.
The Freedom Advisors platform offers several Alpha Quant models, including:
The representations and opinions herein are the opinions and views of Alpha Quant Models and are not the opinions or views of EQIS. The information is believed to be reliable but is neither guaranteed by EQIS nor any of its affiliates. EQIS and Alpha Quant Models are not affiliated. EQIS does not provide tax or legal advice.