Alternative Beta Strategies are dynamical, systematic trading strategies capturing alternative risk premia (like value, momentum, carry, volatility) that are implemented in global liquid capital markets but also employ alternative investment strategies beyond the conventional buy and hold, long only investments. Thereby they capture non-traditional, i.e.
alternative, risk premia (
betas) beyond the well known traditional risk premia such as exposure to equities or bonds. Examples of such alternative investment techniques are the use of derivatives, short selling, the employment of leverage, and dynamic trading strategies. For the sake of clarity Alternative Beta does not refer to what has more recently been coined "smart beta" in the context of alternative rebalancing techniques in long-only equity investing.
|Alternative Beta||Traditional Beta|
|Small Cap Spread||Equity|
|Value / Growth Spread||Interest Rates|
Alternative Beta Partners is one of the pioneers of researching and investing in liquid alternative risk premia / betas. The firm's offerings are based on numerous proprietary investment strategies aiming to identify and invest in common alternative investment strategies. Examples of such strategies are equity hedge strategies, various
arbitrage strategies – to name a few: FX carry or bond carry trades, event driven strategies, or volatility arbitrage strategies.