Investment Philosophy

Alfred Capital provides investment advisory services and individual account management services to high net worth families. Our underlying philosophy as fiduciaries is to manage client portfolios with the same care and diligence we put into managing our own accounts. In fact our principals invest all of their investable assets alongside our clients so that our incentives are aligned with those of our clients.

Alfred Capital builds portfolios around a set of fundamental investment tenets and proprietary research and modeling. We believe that wealthy families should benefit from access to the same set of investment tools utilized by large endowments and institutional money managers. To accomplish this we utilize mean-variance optimization techniques and place great emphasis on disciplined risk management and optimal tax efficiency. The key principles of our investment philosophy are as follows:

Portfolio Diversification:
We diversify between asset class and within each asset class, to maximize each portfolio's risk-adjusted return.

Active Risk Budgeting:
Depending on the asset class we use a combination of low-cost indexed instruments and disciplined active management to provide the right balance of beta and alpha exposure.

Alternative Investments:
Carefully selected alternative investments dampen portfolio volatility by providing noncorrelated returns and reduced downside risk.