Amplified Alpha Capital Management LLC arose from dissatisfaction with our own investment advisors. We wanted less exposure to major stock market downturns, but without sacrificing returns. Using our strengths in mathematics, analytics, and risk management, we devised more sophisticated strategies than those offered by our advisors. After using these strategies ourselves for several years, we started Amplified Alpha in order to offer them to other investors.
We strive for higher returns and less risk. To achieve this, something has to be sacrificed or it would be “too good to be true.” The sacrifice is commitment. We design portfolios to perform for an extended time period (typically a minimum of three years), and our clients need to be certain about their liquidity needs during that period.
We don’t dance “the mutual fund shuffle.” Many advisors switch out similar mutual funds frequently, selling one large cap growth fund for another with similar characteristics. The result is rarely greater returns, yet often higher taxes. We believe many advisors make these fund switches only to appear to be active in managing investments. Their efforts rarely make up for their fees. Also, analyzing mutual funds is limited to studying the metrics of their holdings. On the other hand, index funds (including ETFs & ETNs) are perfectly suited for portfolio analysis, and the availability and liquidity of hedging mechanisms for their underlying indices allow for much more advanced risk management techniques. As a result, index funds comprise the majority of our portfolios.
We customize your individual strategy. We tailor our approach to each client based upon timing, tax, risk, and return needs. Because our advantage is in mathematical analysis, we can easily design programs around each individual client’s goals and risk appetites, all while enhancing tax efficiency. We base our portfolio designs on a 25+ year backtest, taking into account the portfolio’s likely performance during good times and bad (including the dot-com crash, the financial crisis, and the 2020 COVID lockdowns).
To better understand our approach, please see our Three Levels of Innovation.