Discovering Great InvestorsTM

DISCOVERING GREAT INVESTORS™

AlphaDelta™ believes people are drawn to simplicity. Discovering Great Investors is simple but not easy. There are many Investors, few are great. We Discover Great Investors who, over the long-term, stick to their guns and generate above-average returns in an ever-changing world. The portfolios they manage are straightforward, simple and back to basics.

Professionally referred to as Portfolio Managers, Investment Managers or Fund Managers, we call our investment affiliates—GREAT INVESTORS.

The investing world is complex yet the optimal investment needn’t be. A common sense approach is often referred to by investment professionals as a conventional investment approach which is simple, transparent, and focused: “simple” being based in marketable securities which are liquid and priced contemporaneously and being invested in those securities for the long haul; “transparent” in that the strategies are easy to understand as are the risks; and “focused” meaning those strategies contain a limited number of ideas which individually can have a great impact to the portfolio.

Does the size of the fund matter? Absolutely. Large funds become unwieldy and the efficient purchase and sale of individual securities becomes nearly impossible, referred to as a high frictional cost to returns. Great ideas have no impact in a fund with 200, 300 or 1500 stocks. These funds by default, become the index, albeit a costlier version as mentioned above.

Below is a graphic illustration of what AlphaDelta provides to the investing public which we refer to as the sweet spot. Notice the curve of relative performance and the points at which popularity causes money to flow in and risk adjusted returns (alpha) to decrease.