Alpha Prime

The Alpha Prime strategy focuses on a highly concentrated selection of 10 stocks drawn from the top 500 publicly traded corporations. This universe ensures that only companies with strong market capitalization, liquidity, and proven performance metrics are considered. By restricting the selection to the top 500, the strategy focuses on well-established companies with sufficient market presence while leaving room to identify high-momentum trends. This initial universe is the foundation for a rigorous filtering process that prioritizes stocks with significant earnings momentum, growth potential, and alignment with current market trends.

The research process emphasizes advanced quantitative analysis and AI-driven insights to identify emerging opportunities within the universe. Proprietary algorithms analyze fundamental and technical data, emphasizing earnings momentum, price trends, and sector-specific performance indicators. AI-powered market forecasting models enhance precision by detecting regime changes and anticipating future trends. This research framework is dynamic and evolves in response to new data, ensuring the strategy is aligned with prevailing market conditions. Insights from historical performance, volatility patterns, and growth trajectories guide the identification of the most promising high-momentum stocks.

Screening is a rigorous process that filters down the top 500 universe to identify 10 high-potential stocks. Each candidate undergoes a thorough evaluation based on momentum indicators, earnings growth, price trends, and risk-adjusted return potential. The selection process emphasizes companies that exhibit robust upward momentum, strong fundamentals, and resilience to market volatility. By leveraging sophisticated quantitative models, including machine learning algorithms, the screening process ensures that only the most promising stocks with the potential for alpha generation are included. Weekly re-evaluations are conducted to maintain alignment with market dynamics and capitalize on emerging opportunities.

The Alpha Prime strategy employs a dynamic weighting methodology designed to balance risk and reward while maximizing returns, and is a flexi-cap strategy. Each stock in the 10-stock portfolio is assigned a weight based on momentum strength, earnings growth trajectory, and volatility metrics. Weighting is adjusted weekly to reflect updated market conditions and ensure the portfolio remains optimized for current trends. This flexible approach, combined with intelligent risk management, allows for efficient allocation of capital to high-performing stocks while limiting exposure to underperformers. By concentrating on high-momentum opportunities, the strategy amplifies alpha generation potential while adhering to a robust risk management framework.

This smallcase has a weekly rebalance schedule. Once every week, the research team reviews this smallcase and realign the weights with the selected asset allocation strategy for the next week

Alpha Prime Momentum Model

Concentrated Trend: High risk, high strategy aiming to generate alpha return with a few stocks

Alpha Prime Momentum Model

Overview

Stocks & Weights

At a Glance

Holdings Distribution