Alpha Growth is KYUR long-only equity strategy investing in equity securities listed on the major U.S. stock exchanges.
Alpha Growth
KYUR Alpha Growth seeks optimal long-term return, by focus on control of risks of capital losses, and, driven by KYUR proprietary quantitative PMO engine, by investing in stocks of companies with strong fundamental selling at attractive prices to generate excess return, or alpha. Investments in Alpha Growth will be in Separately Managed Accounts (“SMAs”), for complete account transparency and accessibility. While KYUR is responsible for managing the investments in the SMAs, investors have complete access to their accounts, know all the transactions that have been made, and the gains and losses as they occur.
See Model Performance Disclosure for detail on returns and performance data. Rates of return Include dividends and changes in the prices of the securities.
Investment Strategy
KYUR Alpha Growth contains 25 to 40 stocks, a much smaller number than most mutual funds.
KYUR’s research has found that the benefits of diversification decline rapidly once a diversified portfolio exceeds 30 stocks. Indeed, beyond 50 individual stocks, the impact or contribution of the residual or non-diversifiable risk of each individual stock becomes negligible.
The resultant decline of diversification benefits from a large number of stocks can lead to two possible consequences.
First, a larger portfolio increases the chances that it performs mimicry to the market. That is, the portfolio becomes like a market index. To achieve the return stream of the market, an investor may prefer an ETF like SPY –as opposed to a large actively managed fund– for its lower costs, transparency and ease of trading.
Second, the additional securities may be lesser stocks of underperforming companies with inconsistent earnings, lesser financial strengths, and are perhaps over-priced.
Adding stocks could add risks to the portfolio and undermine its performance.
KYUR’s flagship Alpha Growth has a long history. See the graph nearby.
Stock Selection
Alpha Growth employs quantitative algorithms to select 25 to 40 stocks to be included in the portfolio. Driven by the PMO engine, the stock selection process includes KYUR proprietary risk reduction algorithms to calibrate the risks of capital losses of individual stocks.
The PMO process seeks out stocks that possess fundamental strengths and growth prospects that are selling at attractive prices. Such stocks, however, must pass PMO’s quantitative screens and criteria of acceptable risks of capital losses. Those stocks that do not qualify these risk controls are excluded from Alpha Growth, even if they have desirable return prospects.
History shows that optimal return at lower volatility can be achieved with a focus on loss control. Also, because the market is inefficient and prices do not contain enough information about a company, its fundamentals drive the future returns of its stock.
There is a third set of screenings. The top picks must also possess the “Catalytic Momentum”, a set of KYUR proprietary factors, not technical analysis, that measure their potential for readiness of a take-off in price gains.
KYUR Alpha Growth is offered with a minimum investment of $100,000, at an annual fee of one percent (1%), but lower on a sliding scale for larger investment amounts.
For more information please contact us.