TRADITIONAL STRATEGIES
Alpine Saxon Woods Momentum Long Short Strategy
FUND LITERATURE
Investment Strategy Overview
We concentrate on companies that we believe fit into one of the “three pillars”
1. Large cap companies with a legacy of consistent momentum in revenue and earnings
- High and sustained demand growth
- Supply constraints
- Bulletproof balance sheets
- Demonstrated and unassailable competitive advantage (deep moat)
2. Small and mid-cap companies that are building momentum within their industries and advancing new technologies
- Accelerated revenue growth
- Significant operating leverage with rapidly improving profitability expected
- Highly innovative management team
3. Turnarounds: former leaders with a recent setback, trading at a discount to intrinsic value
- Clear path to retake dominant position in the market
- Solid understanding of what went wrong and how to get back on track
- Corporate actions that help solidify the turnaround case
Portfolio Construction Parameters
Portfolio Construction - Hedging
- We use various hedging instruments to help protect long exposure against downside risk and volatility.
- Attractiveness determinants include:
- Negative correlation
- Assumed risk comfort level
- Time horizon
- Cost
- Instruments include:
- Shorting individual stocks
- Shorting sector and/or market-based ETFs
- Put option contracts on individual stocks snd ETFs
Risk Management
- Position Review
- Review investment thesis if stock declines 15% from initial purchase price
Sell Discipline
- Change in fundamentals
- No longer meets capital return parameters
- Original investment thesis has changed
- Catalysts no longer exist
- Operating health deterioration
- Financial health deterioration
- Valuation
- Stock reaches valuation target
- Diversification
- Individual security limits
- Sector limits
Meet the Team
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More Strategies & Investments
Traditional Strategies
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