2023 06 Image Portfolioconstruction feature article


Portfolio construction – Lower beta with alpha from 'dynamic hedging'

  1. Diversification with non-correlated assets (as measured by beta) reduces portfolio risk.
  2. Beta can change with different market conditions and may not be a reliable future indicator. Look for “safe haven” assets.
  3. A fund with demonstrated 'alpha' consistently beats its benchmark with 'excess' returns, improving the portfolio’s risk-adjusted returns.

Since our inception in December 2010 Gyrostat Class A Units have a track record of no quarterly downside exceeding our quarterly pre-defined loss limit of 3%.


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