Bluestone 4ALPHA Core & Enhanced SMID
The Bluestone-4ALPHA SMID Core/Enhanced Strategies is a separately managed account with the objective of maximizing risk-adjusted returns by investing in Smid or small-mid market capitalization domestic stocks. We attempt to do this by taking our extensive investment experience and researching companies in an underfollowed part of the market and that may be at an inflection point to a positive fundamental change in their business. ETFs and options may be used to help manage risk.
This strategy combines the best attributes of small and mid-cap investing. We believe alpha, or excess return relative to the overall US equity benchmark index, can be generated by investing in smaller companies that are less followed, at the cusp of a positive fundamental change in their business, and whose business models have developed to be emerging leaders in a segment with a large and profitable addressable market. The strategy focuses on earnings growth companies that have attractive relative valuations. Additionally, the strategy will at times hold a small percentage in ETFs for the purpose of managing risk, providing quick tactical exposure to a market sector, or as a hedging strategy. The strategy is appropriate for long-term investors.
The 4ALPHA SMID product team started the strategy with the key idea of “managing how we invest our own money.”
Greg Travers has 28 years of investment experience. Prior to founding 4ALPHA, Greg spent the prior nineteen years as a partner, portfolio manager/Equity analyst with Kalmar Investments successfully covering numerous sectors focusing on technology, healthcare, and financial services. He is a graduate of Pennsylvania State University with a degree in Finance. In addition, he holds both the CFA and FP&A designations.
Steffen Torres has over 26 years of investment experience. Prior to founding 4ALPHA, Steffen spent the previous nineteen years as a partner, portfolio manager/equity analyst with Kalmar Investments. He has in-depth knowledge of many sectors including cyclicals, consumer discretionary, and energy. Steffen has an MBA from Indiana University’s Kelley School of Business and an undergraduate degree in Economics and International Relations from the University of Delaware.
Rick Gessner has 30 years of investment experience. He has worked in senior positions at Capital One, Kalmar Investments, and GS Capital. He is Chairman of the Board of the Wilmington Land Bank, Chairman of Habitat for Humanity of New Castle County, Treasurer of the Ministry of Caring, and a founder and past President of the Ronald McDonald House of Delaware. Rick has an MBA from the Wharton School of Business of the University of Pennsylvania. In addition, he has a Masters’ degree in Political Science from the University of Delaware and a Bachelors degree in Economics and History from Franklin & Marshall College.
- Inception June 2018
- Bluestone 4ALPHA founded by three former colleagues each with over 25 years investment experience.
- Typical Allocation is 45 to 60 stocks
- Market Capitalization Range: $200 million to $12 Billion
- Average Market Cap: ~$4.2 Billion
- Both Products Use ETFs to manage risk, providing quick tactical exposure to a market sector, or as a hedging strategy.
- Bluestone 4ALPHA Enhanced uses buy-write options to enhance returns, generate income and hedge positions.
WHY WE BELIEVE SMID IS THE SWEET SPOT OF MARKET CAP:
- More proven business models than small-micro cap
- Increased profitability and stronger balance sheets than small cap
- Overlooked asset class producing historically higher returns than large-cap
- Under-owned asset class
As of 2/1/2019
|Core SMID||Enhanced SMID||RUSSELL 2500|
*Composite inception date August 1, 2018
All returns are Net of Fees
Please contact us at email@example.com