Dick Pfister, founder of AlphaCore Capital, is busy bringing a new asset management model to the high net worth and financial advisory market. With less than 2-years under his belt since the inception of his firm, Pfister has quickly gathered assets from both individual investors and financial advisors. His approach? Put alpha generation and alternative investments at the core of your portfolio, and specific beta strategies around the periphery.
New Mutual Fund
So far, his approach has resonated with investors and advisors as AlphaCore closes in on $100 million in advisory assets. While advisors can allocate to AlphaCore’s model portfolios through several of the major custodians, Pfister has a desire to make his strategies available to a wider audience. This has led to the firm’s recent take over and renaming of an existing five-star Morningstar rated mutual fund.
The newly rebranded fund and the other AlphaCore models vary from most of their kind: most multi-alternative mutual funds have a fairly high correlation to stocks and exposure to credit, thus diminishing the potential benefit of diversification. The AlphaCore Absolute Institutional Fund (GDAMX) is designed to provide diversification from traditional stocks and bonds with the specific blend of alternative strategies employed in the AlphaCore model.
Lead Portfolio Manager of the AlphaCore Absolute Institutional Fund, Jonathan Belanger, will be using the AlphaCore “Absolute Balanced” model inside the recently rebranded fund, allocating to eight to twelve alternative strategies. Belanger notes, “The AlphaCore Absolute models were designed to provide advisors with not just another product but also advice about how to allocate alternative strategies, particularly liquid alts.”
AlphaCore’s new fund will now compete in the Multi-Alternative category. This category currently contains 132 funds, only five of which are 5-star Morningstar funds and 62 of the 132 funds have less than a 3-year track record. Flows into the category were strong up until this past quarter when investors pulled $977 million from multi-alternative funds. Over the past year however, flows have been positive, nearly reaching $4 billion.
With a new investment vehicle under its umbrella and model portfolios widely available on custodial platforms, Pfister and the AlphaCore team will look to continue building on their recent wins.
Also see (or listen) to a recent podcast: Allocating to Alternative Investments With Dick Pfister