Investors in Active Alts, Inc. (“Active Alts”, “we” or “us”) have the opportunity to participate in the ownership of the management company.
Tested, research-based models actively managed by experienced portfolio managers are the gold standard for wealth funds and strategies. Access to top-tier market research is expensive, and for investors it’s often challenging to effectively benefit from without proper portfolio management and with limited investment products available.
Active Alts has partnered with SentimenTrader.com to create investment strategies powered by SentimenTrader.com’s world-renowned research and proprietary indicators, and managed by Active Alts to help better manage client risk in bull and bear markets.
SentimenTrader.com, a division of Sundial Capital Research, is not focused on analyzing to market direction but rather risk management. SentimenTrader.com analyzes data that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. Our work focuses on risk-adjusted expectations given existing evidence. SentimenTrader.com remain a market-leading research brand, and Active Alts partnered with SentimenTrader.com to create equity long/short strategies.
Hedge funds have seen a massive growth in popularity over the past 50 years. ETFs have also grown in popularity, as their relative liquidity and general ease-of-use has appealed to the entire investment community.
Over the past decade new regulations have opened the door to allow hedge fund strategies to operate within Mutual Fund, ETF and SMA structures. This combination has created the term “Liquid Alternatives” which have exploded in popularity, and can be accessed more fluidly by investors.
Active Alts was built specifically to provide a proprietary alternative to the lackluster opportunities currently distributed in the personal finance marketspace.
Our proprietary model provides many features that until now have been lacking in the market:
BACKTESTING HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE LIMITATION OF HYPOTHETICAL PERFORMANCE RESULTS IS THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK. NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. WE HAVE NOT TRADED THIS STRATEGY FOR CUSTOMERS. BECAUSE THERE ARE NO ACTUAL TRADING RESULTS TO COMPARE TO THE HYPOTHETICAL RESULTS, CUSTOMERS SHOULD BE WARY OF PLACING UNDUE RELIANCE ON THESE HYPOTHETICAL PERFORMANCE RESULTS. THE ADVISOR, DURING THE PERIOD IN QUESTION, WAS NOT MANAGING MONEY ACCORDING TO THE STRATEGY DEPICTED. THE RESULTS DO NOT REPRESENT THE RESULTS OF ACTUAL TRADING USING CLIENTS ASSETS, BUT WERE ACHIEVED BY THE MEANS OF A BACKTEST.
Past performance is not an indication of future performance. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategy mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
The discussion herein is neither an offer to sell nor a solicitation of an offer to buy any securities. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. This material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate strategies depend upon the client’s specific circumstances and investment objectives. Active Alts does not represent that the information is complete and expressly disclaims any liability, including incidental or consequential damages, arising from errors or omissions in this publication.
Dividends are included in the back tested performance results. We have also calculated the net results by applying the highest management fee to be charged to advisory clients. Results will vary based on the amount of the fee applied. The results were also calculated by rebalancing the long and short portfolios on a monthly basis. The portfolio selection was and will be generated from the proprietary SentimenTrader.com stock selection process which is based on quantitative factors and mechanically driven.
Other calculation criteria: No taxes were deducted; no borrowing costs were added; and no ex-dividend costs were included from the short portfolio.
Indices are not indicative of the strategy and may not be suitable for comparison purposes. Back tested returns should not be considered indicative of the skill of an investment adviser.
Active Alts, Inc. (“Active Alts”) is an investment adviser registered with the SEC. Active Alts manages the Active Alts SentimenTrader.com L/S Strategy and SentimenTrader.com serves as the research / index provider for the strategy.
The data and analysis contained within are provided “as is” and without warranty of any kind, either expressed or implied. The information is based on data believed to be reliable, but it is not guaranteed. SentimenTrader.com DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. Investors should consult their tax advisors before making investment decisions, as well as realize that past performance and results of the model are not a guarantee of future results. The Active Alts SentimenTrader.com L/S Strategy model is not intended to be the primary basis for investment decisions and the usage of the model does not address the suitability of any particular investment for any particular investor.
Downside deviation is a measure of downside risk that focuses on returns that sell below a minimum threshold of a Minimal Acceptable Return (MAR).
Sharpe ratio is the average return earned in excess of the risk free rate per unit of volatility of risk.
Time to recovery is the duration of time it takes to restore the value lost
Partnership with SentimenTrader.com gives Active Alts a strategic “foot in the door” with key customers.
Following the successful launch of our premier products, we plan to expand our partnership with SentimenTrader.com by launching additional structured products designed to optimize use of the SentimenTrader data.
This second-round of investors would provide the capitalization and ongoing revenue we require to support existing customers from SentimenTrader.com initial pool of leads and develop ancillary products further tailored to the market in general.
Brad Lamensdorf - CEO
Mr. Lamensdorf serves both as the Portfolio Manager and as owner of the Sub-Advisor. Mr. Lamensdorf has served as a portfolio manager and principal of Ranger Alternative Management, L.P. since 2009, providing trading and marketing strategy for short only portfolios.
Brad Lamensdorf, a seasoned money manager and market strategist, is the CIO of The Lamensdorf Market Timing Report, a newsletter designed to help investors improve performance via market timing by assessing the environment of the stock market using a variety of technical, fundamental and sentiment-oriented tools from powerful independent research firms. Many investors mechanically enter and depart the market without a trµe "game plan." Studies have shown that retail investors, in particular, are very poor market timers, tending to invest at or near market peaks and sell at or near market lows. The newsletter is designed to provide risk parameters for both professional and retail investors around the short-term stock market environment, giving subscribers better insight about when to allocate assets into or out of the equity markets.
Lamensdorf, a frequent guest commentator and analyst on major business networks including CNBC, CNN and Fox Business News, also serves as a Portfolio Manager and Principal of Ranger Alternative Management LP, a sub-advisor to the Advisor Shares Ranger Equity Bear Exchange Traded Fund (NYSE: HDGE). In this role, he conducts top-down technical evaluations of broader market liquidity, sentiment and breadth to help identify short and intermediate-term market trends, manage exposure and mitigate risk. HOGE was launched in 2011 and is the first and sole actively managed, short-only ETF in existence.
Lamensdorf, also was founder and CIO of Tarpon Partners, managing a long/short fund that was up more than 260% gross from 1998-2005. Earlier in his career, he was as an equity trader/market strategist for Taylor and Company, the Bass Brothers' trading arm, co-managing a short-only strategy among other alternative strategies of over 1 billion is AUM.
John Allen - COO
John Lawrence Allen commenced his profession as a prosecutor in the Los Angeles District Attorney’s Office where he quickly established a reputation as a highly skilled litigator.
Mr. Allen left the practice of law and started a private fund where he pioneered program trading devising a hedging and risk arbitrage system for the S&P 500 Stock Index futures market. After several highly successful years, Mr. Allen was recruited to manage his trading program for Shearson American Express. After a decade working in the investment community, Mr. Allen returned to the practice of law specializing in securities arbitration involving securities regulation, broker/dealer fraud, securities fraud, customer complaints, and employment law. Mr. Allen had represented broker/dealers, hedge funds, registered investment advisors, customers and registered representatives in arbitration before FINRA, the American Arbitration Association and in regulatory matters before FINRA.
Mr. Allen was asked to assist the United States Permanent Select Committee on Investigations of micro-capital stock fraud and senior abuse in 1996 and also served as Chairman of the Joint Committee of the State Bar of California and the Royal Courts of Justice for England and Wales. He has served on various Financial Industry Regulatory Authority (FINRA) forums on procedural reform, seminar speaker and panel member for the FINRA, Arbitration Chairman before the American Arbitration Association, arbitration panel member of the Financial Industry Regulatory Authority Office of Dispute Resolution, and is a frequent speaker before professional and lay audiences on recognizing and preventing investment fraud. Mr. Allen has been called upon to provide expert commentary for print and electronic media and has received frequent coverage of high profile cases in The Wall Street Journal, The New York Times, The Los Angeles Times, Business Week, Barron Magazine, CNN, CNBC, NBC Evening News, ABC World News Tonight, Blumberg, National Public Radio and other television and radio programs. Mr. Allen is author of Investor Beware published by John Wiley & Sons; his latest book Make Wall Street Pay You Back was released in April 2014. Mr. Allen wrote a monthly column on investment fraud for Physician Money Digest and is a contributing author for the Practicing Law Institute.
Mr. Allen serves in the United States Coast Guard Auxiliary and the New Canaan Community Emergency Response Team (CERT).
Amanda Misch - CCO
Amanda Misch is a Vice President at Alaric. Her experience includes working with chief compliance officers in establishing compliance programs for SEC, FINRA and CFTC registered firms. She has prepared clients for SEC and FINRA examinations. Her product experience includes private funds, mutual funds, hedge funds, stocks, bonds, loans and derivatives. Ms. Misch also has experience in state registration and various state and federal regulatory filings.
Currently, Ms. Misch clients include several investment advisers, investment companies and private funds ranging from startups to over $1 Billion Dollars in assets under management.
Prior to joining Alaric Compliance, Amanda’s responsibilities included researching and preparing memorandums regarding various SEC regulations as well as preparing and filing regulatory filings (Form ADV, Schedule 13-G, Schedule 13-F, Forms 3, 4, and 5, Form 8-K, etc.).
In her most recent position prior to joining Alaric Compliance, Amanda served as corporate legal associate for a New York-based law firm. In that role, her responsibilities included:
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