Strategy

What is an alpha
strategy?

An alpha strategy aims to combine return drivers that are not dependent on directional moves in the equity and fixed income markets. Combining multiple sources of uncorrelated returns can provide investors with a unique strategy aimed to enhance risk-adjusted returns..

Why invest in our alpha strategy?

  • Diversification. The strategy aims for a low correlation to traditional stocks and bonds in a portfolio that can enhance risk-adjusted returns.
  • Return generator. The strategy aims to deliver attractive returns in challenging environments, like rising rates or declining global equities, both on an absolute basis and relative to cash.
  • Enhanced portfolio construction. Focus on risk allocation plus prudent use of leverage.
  • All-in-one solution. An actively managed core alpha alternative allocation that combines the firm’s best ideas from the investment expertise of the equity, fixed income, arbitrage and quantitative teams.

How does our alpha
strategy work?

Our alpha strategy combines the firm’s best ideas by deploying the investment expertise of the equity, fixed income and merger arbitrage teams, and the factor risk premia of the quantitative team. The low correlation among these components to equity markets aims to enhance risk-adjusted returns.

Picton Mahoney

alpha strategy

Tail Risk Hedges
  • Portfolio
    Management
    Expertise
  • Market Neutral
    Equity
  • Special Situations 
  • Merger
    Arbitrage
  • Factor
    Risk Premia
  • Momentum
  • Quality
  • Value

Who is our alpha strategy suitable for?

Our alpha strategy may be suitable for investors who:

  • Seek an alpha strategy that aims to enhance overall portfolio diversification by combining several return drivers that are not dependent on directional moves in the equity and fixed income markets.
  • Desire a strategy that aims for an equity-like return with less volatility.
  • Seek an all-in-one solution that combines the firm’s best ideas by deploying the investment expertise of the equity, fixed income, arbitrage, and quantitative teams in one strategy.

What alpha strategy investment products does Picton Mahoney offer?

Alternative Investment Solutions are available as mutual funds, liquid alternative funds and hedge funds. Our suite of Fortified Mutual Funds, Fortified Alternative Funds and Authentic Hedge® Funds give investors more choice and ease of access to alternative strategies, adding an alternative source of returns to fortify a portfolio. Our goal, for over 20 years, through different market cycles and investing environments, has been to improve the quality of returns by offering alternative investment solutions.

This information has been provided as a general source of information, is subject to change without notification and should not be construed as investment advice. This material should not be relied upon for any investment decision and is not a recommendation, solicitation or offering of any security in any jurisdiction. The information contained in this material has been obtained from sources believed reliable, however, the accuracy and/or completeness of the information is not guaranteed by Picton Mahoney Asset Management (PMAM), nor does PMAM assume any responsibility or liability whatsoever. All investments involve risk and may lose value. This information is not intended to provide financial, investment, tax, legal or accounting advice specific to any person, and should not be relied upon in that regard. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

There is no guarantee that a hedging strategy will be effective or achieve its intended effect. The use of derivatives or short selling carries several risks which may restrict a strategy in realizing its profits, limiting its losses, or, which cause a strategy to realize or magnify losses. There may be additional costs and expenses associated with the use of derivatives and short selling in a hedging strategy.

The offering of units of the Picton Mahoney Authentic Hedge® funds are made pursuant to an Offering Memorandum only to those investors in jurisdictions of Canada who meet certain eligibility or minimum purchase requirements. Prospective investors should consult with their investment advisor to determine suitability of investment. Please see the Fund’s Confidential Offering Memorandum for more information, including investment objectives and strategies, risk factors and investor eligibility.

Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Alternative mutual funds can only be purchased through a registered dealer and are available only in those jurisdictions where they may be lawfully offered for sale.