Alpha Optimization

Our Philosophy

We believe in actively, advised services and strive to deliver top-quality service in all that we do.  We take a quantitative, active, and tactical approach to investing. A quantitative approach provides for a systematic discipline in investing.  An active management style allows us to quickly and tactically react to changes in market sentiment. Each investor has a unique risk tolerance and deserves a customized allocation specific to his/her objectives. We use a discretionary fee-based structure in which the client and the advisor share a common interest in the management of the assets.

Socially Responsible Investing (SRI)

For clients for whom socially responsible investing is a priority, we offer the option of socially-screened portfolios. In these, we avoid companies that have poor environmental records, negative relationships with unions, unsafe working conditions, serious product safety issues or other liabilities, a history of anti-trust practices, consumer fraud, or deceptive marketing, as well as those who discriminate against employees, produce nuclear weapons, receive significant revenues from Department of Defense contracts involving conventional weapons, derive significant revenues from the tobacco, gambling, alcohol, or nuclear power industries, and those overseas business operations that support a government that systematically violates its citizens' human rights.

Our Strategies

Recognizing that each investor is unique, we employ an allocation of the various strategies listed below. By doing so we believe we can create positive alpha on a risk adjusted basis. Alpha is the difference between the return realized by an investment and that of a comparable benchmark.

Active Tactical Stock Model

This model has a goal to outperform the S&P 500 Index (Total Return) on a risk adjusted basis. We use a quantitative approach that modulates a blend of cash, inverse S&P (SH) and securities depending on changes in market sentiment. We believe this model can create positive alpha by outperforming the benchmark on a risk adjusted basis in times of positive market momentum, and creating downside protection by reducing draw-down during times of negative market momentum. In order to minimize individual company risk, the model typically holds up to 30 stock, cash or inverse positions.

Active Growth/Momentum Stock Model

This model has a goal to outperform the S&P 500 Index (Total Return). We use a quantitative approach that modulates low and high risk securities depending on changes in market sentiment. We believe this model will create positive alpha by outperforming the benchmark in times of market deterioration and during times of market appreciation. In order to minimize individual company risk, the model typically holds up to 30 stock positions.

Active Fixed Income ETF Model

This model has a goal to outperform the iShares Core US Aggregate Bond Index (AGG).  Weuse quantitative approach to determine current Fixed Income ETFs (exchange traded funds) that are outperforming the benchmark. By monitoring duration, quality, and domestic vs. international risks as they relate to the benchmark, we believe this model will create positive alpha.

Passive Index ETF Asset Preservation Model

This model has a goal to outperform the Dow Jones U.S. Conservative (Price Return) Index.  We use a modern portfolio diversification of index ETFs (exchange traded funds) to build this model.  We rebalance quarterly with a goal of smoothing volatility so as to meet or outperform the benchmark.

Passive Index ETF Income Model

This model has a goal to outperform the Dow Jones U.S. Moderate-Conservative (Price Return) Index.  We use a modern portfolio diversification of index ETFs (exchange traded funds) to build this model. We rebalanced quarterly with a goal of smoothing volatility so as to meet or outperform the benchmark.

Passive Index ETF Enhanced Income Model

This model has a goal to outperform the Dow Jones U.S. Moderate-Conservative (Price Return) Index.  We use a modern portfolio diversification of index ETFs (exchange traded funds) to build this model.  We rebalance quarterly with a goal of smoothing volatility so as to meet or outperform the benchmark.

Passive Index ETF Growth & Income Model

This model has a goal to outperform the Dow Jones U.S. Moderate (Price Return) Index.  We use a modern portfolio diversification of index ETFs (exchange traded funds) to build this mode.  We rebalance quarterly with a goal of smoothing volatility so as to meet or outperform the benchmark.

Passive Index ETF Growth Model

This model has a goal to outperform the Dow Jones U.S. Moderate-Aggressive (Price Return) Index.   We use a modern portfolio diversification of index ETFs (exchange traded funds) to build this model.   We rebalance this quarterly with a goal of smoothing volatility so as to meet or outperform the benchmark.

Passive Index ETF Aggressive Growth Model

This model has a goal to outperform the Dow Jones U.S. Aggressive (Price Return) Index.  We use a   modern portfolio diversification of index ETFs (exchange traded funds) to build this model.  We rebalance quarterly with a goal of smoothing volatility to as to meet or outperform the benchmark.

 

 

The philosophies and strategies represented by these models and managed by Kelsey Financial, LLC do not protect against market loss and accounts may lose value.  Carefully consider these strategies' investment objectives, risk factors, and charges, expenses and fees before investing.  This and other information can be found in the Kelsey Financial, LLC ADV and can be obtained by calling (424) 750-1103.  Read the ADV carefully before investing. Investing involves risk including possible loss of principle.