Alpha Bonds Strategy

The Alpha Bonds Strategy is an asset allocation strategy designed for investors who seek income, low volatility and an ongoing exposure to the bond market without attempting to time swings in interest rates, and without some of the price and credit risks associated with long-term and/or lower grade bonds. This strategy combines the performance of conservative bond funds with Alpha's unique seasonal trading method that attempts to exploit the consistently profitable year-end "power periods" for small-cap stocks. This addition can potentially boost overall strategy returns above and beyond a typical bond only strategy, particularly in a low interest rate environment.

Each year, the investment rules of the Alpha Bonds Strategy are as follows:

  • January 1 until late-October, the strategy holds roughly 70% intermediate-term bonds and 30% short-term bonds.
  • In late-October, 40% of the portfolio remains in intermediate-term bonds while 60% of the portfolio is devoted to our three "power period" trades using the Russell 2000 Index leveraged by 50%. While not invested in the three fourth quarter trades, 60% of the funds are allocated to cash/money market.

We believe that the unique combination of conservative bonds with the controlled risk exposure to equities in the fourth quarter of each year offers an attractive opportunity for investors who seek capital growth with strong risk management.

For more detailed information about this strategy, please click the links below to read the Alpha Bonds Strategy brochure and fact sheet.

Click here for the strategy brochure

Click here for the strategy fact sheet