AlphaCore Capital launched an allocation strategy that flips the established allocation method on its head by employing alternative investments as the central theme in well-balanced portfolios.
The firm, located in La Jolla, CA, combines the independent, model of a family office with the investment resources sometimes missing from other independent advisory firms.
Conventional asset allocation models typically use a blend of equities and fixed income, based on the investor’s time horizon and risk tolerance. In this low interest rate environment a traditional 60/40 model may expose investors to unnecessary risk. In fact, many investors know that risks are increasing but do not know what to do about it. AlphaCore Capital believes that a core allocation to alternative investments is a viable solution. There has been a dramatic improvement in the access to high quality liquid alternatives in the last five years, and AlphaCore believes these investment strategies will be critical in helping to meet investors’ financial goals.
“We’ve developed a risk mitigation strategy using liquid alternatives that attempts to generate returns in a rising interest rate environment and protect capital if equity markets stumble,” says Dick Pfister, the firm’s founder and CEO. “Many endowments and pensions include alternatives as a major part of their asset allocation. At AlphaCore, we are providing a method for the individual investor to participate in a similar strategy. Prudent use of alternatives in investment portfolios are utilised with the goal of decreasing risk and soften market volatility.”
Pfister, who invests his personal net-worth alongside his clients, founded AlphaCore after serving as a managing director and partner of Altegris Investments for more than 12 years.
With this investment philosophy at the core of their methodology, AlphaCore works to provide customised investment advice and financial planning to high-net-worth individuals and advisors. The firm is independently owned, providing wealth management and investment management services. Clients pay AlphaCore a single, transparent advisory fee based on assets under management.