The investment system that Alpha Captech has developed is based on a rigorous
scientific approach. All investment decisions rely solely on data driven
algorithms that have been validated through
extensive and state-of-the-art back-testing. It is also a
long-only system with no derivatives or any use of debt leverage. More
specifically, the developed system invests in exchange traded stocks in
37 developed and emerging markets across all industries. The system
exploits well known stock market anomalies such as value, momentum,
quality, size and volatility. These are used in
combination with other selection criteria to systematically create
portfolios with much higher returns and lower risks than the world stock market.
Investment in stock market anomalies is an
enduring business opportunity. It profits from the never ending mispricing
in stock markets such as those caused by less informed and/or less
rational investors’ overreactions to good or bad market information.
Alpha Captech’s investment system is a comprehensive enhancement and
extension of several publicly known and independently verified anomaly
strategies combined with multiple ideas of Mathiesen's own making.
Investors benefit from this proprietary system that significantly
outperforms other long-only world stock market investments.
Portfolio replicating 1 to 1 back-tests
have verified that the developed investment system has a much higher average annual return than MSCI’s
world stock market index (ACWI AC, gross, USD, All Cap). At the same time, the portfolio risk
of the developed system is
less than this benchmark. This can be seen by its higher probability of earning higher
returns than this benchmark as measured for any length of time horizon.
It can also be seen from its higher probability of earning positive
returns than this benchmark for any given time horizon.
To be sure, the developed investment system should
not be expected to
outperform the world stock market return every year. This is mainly because its
investment strategy is unique and therefore subject to cycle effects that may differ importantly from
the investment return cycles in the world stock market.
To learn more about Alpha Captech's investment system please e-mail
H. Mathiesen at