APPROACH

Through its experience and track record, the Alt224 investment team believes that the highest quality investment ideas must be derived from cross-asset inputs. Alt224 does not believe in or claim to have an information advantage but recognizes that the majority of investment research and investment strategies are focused on a single asset class, implying that the security’s price discovery and risk premium assessment is often incomplete. Alt224 seeks to understand what the market is pricing in across asset classes, to think ‘outside the box’, to remain humble and to avoid going against market momentum.

Given the efficiency of markets, there is a scarcity of high-quality investment opportunities, i.e. those combining optimal risk/reward attributes with a margin of safety. As a result, Alt224’s portfolios are typically highly concentrated on such rare opportunities. Alt224 diversifies its investments, but not by following industry benchmarks. Alt224 mitigates portfolio concentration risks by strategically framing price catalysts and ensuring a well-diversified exposure to market risk, even with a more focused and smaller number of positions. Alt224 does not invest when conviction is low, but rather sizes portfolio positions according to conviction.

Alt224’s investment opinions are independent and absolute return driven. Alt224 prioritizes the alignment of interests with its investors. For Alt224, the success of the investor is paramount and the requisite for loyalty.