Alpha Centauri is a specialist investment boutique for liquid alternative risk premia and equity factor strategies. Within the investment industry, they are known for their high data quality solutions and risk management capabilities.

10 years of experience managing up to €3b in assets have helped us defining what they stand for today.

Skill based investment organization

Contrary to the classical structure of investment organisations, which are typically built alongside asset classes, they believe in the power of employee skills across the investment value chain. The "limits of arbitrage" show up in research, where a lot of well know return drivers lack predictive power and risk management, where alpha sources morph into beta exposures as well as in implementation, where costs and time lags sap returns.

 

Economic rational

They are strong believers in analyzing and understanding the economic drivers behind investments. Most sources of economic impact fall in categories of fundamental, behavioural or institutional nature. They rely heavily on high quality data, because standard sources are prone to massive revisions, which in turn mask the real economic impact behind movements in asset prices.

 

Asymmetric payoff structures

Capital markets theory has a strong affinity with linear mathematical concepts. This is contrary to economic reality, because asymmetries have a strong fundamental underpinning. This leads to time varying volatilities, correlations and betas. Reality bites when correlations increase rapidly and hedges refuse to work.