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Alpha Composite Returned 90% In 7 Years

Investors Offshore, London

16 January 2003

Alpha Investment Management, a global provider of hedge fund investments, has announced that its Alpha Composite returned 90.67% from inception on November 1, 1995 till October 31, 2002 net of all fees, versus 10.89% for the MSCI AC World Index, which represents an outperformance of 79.78% over that period.

The Alpha Composite is made up of the globally diversified, multi-strategy funds of funds for which Alpha serves or has served as investment adviser since November 1995. The Alpha Composite is indicative of the performance an investor in these funds of funds advised by Alpha Investment Management would have achieved over the last seven years.

The Composite is currently based on the asset-weighted performance of 9 open funds of funds which are diversified among strategies and managers. The total assets of these funds of funds was approximately $1.24 billion on October 31, 2002.

Says Alpha:

  • This out-performance is particularly apparent during difficult market conditions. Between January 1, 2000 and October 31, 2002, the Alpha Composite returned 9.57% against -44.23% for the MSCI AC World Index.
  • The Alpha Composite achieved these returns whilst controlling volatility with an annualised standard deviation of 6.24% over the last seven years against 16.00% for the MSCI World Index over the same period. During this time, the Composite’s maximum drawdown was -7.07% against -48.44% for the MSCI AC World Index.

Nigel Meir, Managing Director, Alpha Investment Management (UK), commented: “We aim to preserve our clients’ wealth especially during periods of stock-market turmoil. Our conservative but consistent returns are based on that philosophy. The selection of each hedge fund manager and the allocation of assets among the strategies employed by Alpha's funds of funds are based on our proprietary screening and portfolio-construction process. Managers are then closely monitored to ensure that stated trading and risk-management guidelines are rigorously and consistently applied. The performance of the Alpha Composite further demonstrates the value of hedge funds in producing consistent returns with controlled volatility.“

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