For educational purposes only. Nothing on this site constitutes investment advice.Disclaimers
Stack alpha, not beta
Hedge fund strategies, stacked. Open to anyone.
Alpha stacking takes the strongest ideas from proven institutional strategies (long/short equity, global macro, managed futures, risk premia, systematic alternatives) and layers them on top of equity. The aim is to create portfolios that can seek excess total returns in bull, bear and sideways markets.
Alpha stacking brings institutional portfolio construction within reach of any investor, built entirely from low-cost, publicly listed ETFs. These strategies are no longer exclusive to hedge funds, private equity, and venture capital. No minimums or accreditation required.
CAD-diversified US and Canadian sleeves with intentional beta near 1.0.
Total return vs S&P 500 index — all history (CAD)
+177.92%
Global + Long/Short
+114.51%
SPY (benchmark)
+63.41%
Excess α vs SPY
1.06
Sharpe
Excess return above the 4.5% risk-free rate divided by annualised volatility.
Above 1.0 is good; above 2.0 is excellent.
SPY typically scores around 0.5–0.8.
1.53
Sortino
Excess return above the 4.5% risk-free rate divided by annualised downside deviation (penalises losses only).
Above 1.5 is good; above 3.0 is excellent.
Take $10k invested ten years ago. The left portfolio tracks the S&P 500 index total return. The right portfolio adds a flat +3% alpha per year on top of the S&P 500 index. Through compounding the small incremental amounts turn into big outperformance.
S&P 500 index (total return)
$39,650
Illustrative stacked portfolio (+3% alpha/yr vs S&P 500 index)