Alpha Theory

alpha theory



Alpha Theory adds science to the art of fundamental portfolio management by combining investment management best practices, key lessons from the field of behavioral finance, and the power of cloud computing. Using only the firm’s fundamental research and its unique portfolio management preferences, parameters, and constraints as inputs, Alpha Theory centralizes the entire investment team’s activities into a formalized, efficient, and auditable workflow, converts previously subjective and imprecise heuristic portfolio management calculations into a robust mathematical equation, and dynamically generates suggested sizing adjustments designed to maximize the risk-adjusted return of the portfolio.

Alpha Theory provides DISCERN with option-implied probabilities for specified scenarios, allowing users to set signals off of unusual changes.