Alternative Equity

We seek to complement traditional investment strategies with a differentiated long/short equity portfolio

A key lesson from prior market cycles is the importance of durable portfolio construction. While traditional asset classes typically form the core of a client’s portfolio, alternative equity strategies can enhance diversification benefits and are an important part of our investment platform.

Matrix Private Capital Group offers a differentiated equity strategy which seeks to deliver superior long-term performance for its clients. The strategy is actively managed by a dedicated team of our investment professionals. The team aims to create value by making targeted investments in companies based on in-depth fundamental analysis. A high degree of investment flexibility is built into the process so that investments can be appropriately geared to the changing economic environment.

Our Approach

Our Alternative Equity investment objective is straight forward: deliver attractive long-term performance and outperform broad market indices. To achieve this objective, we believe the following attributes are important.

Flexible strategy

Our investment strategy is flexible by design. We invest across market capitalizations, sectors, and style classifications. Individual market segments tend to shift in and out of favor rapidly. Having the flexibility to invest across market segments improves long-term performance potential and lowers the risk associated with being confined to a specific area of the market.

Long and short investments

Having the ability to capture upward and downward moves in the market is another important component of flexibility and improves performance potential in a wider range of economic environments. While we will make long and short investments, our intention is to maintain a long-biased strategy within attractive asset classes that exhibit long-term growth characteristics.

Focused portfolio

A concentrated portfolio of targeted investments allows for a higher degree of selectivity in the investment process and will lower the correlation to broad stock market indices. The purpose is to have performance driven primarily by company-specific factors rather than broad-based market movements.

Fundamental analysis

Investment decisions are based on in-depth fundamental analysis. Our research process emphasizes what we believe are key drivers of shareholder value: the sources and stability of earnings, return on capital characteristics, future reinvestment opportunities, and other potential uses of capital to enhance shareholder return.

Risk management

Standard measures of volatility assign equal “penalty” to upward and downward movement. We do not view risk in terms of volatility; we view risk as the potential for capital loss. Risk management is an important part of the investment process, and we seek to mitigate capital loss at both the portfolio construction and individual holding level.