Portfolio Construction & Investment Advisory

Independent portfolio construction and manager selection for family offices and institutional investors allocating to

managed futures and systematic strategies.

Advanced Alpha Advisers provides portfolio construction and investment advisory services to family offices, Qualified Eligible Participants (QEPs), and institutional investors allocating to managed futures and systematic strategies.

Our work focuses on risk-aware portfolio design, manager selection, and ongoing oversight within a total-portfolio framework.

Managed futures are evaluated as a risk and diversification tool within a broader portfolio, not as a standalone return product.

Our Approach

We apply a risk-first portfolio construction framework designed to improve diversification, reduce drawdown exposure, and enhance portfolio resilience across market regimes.

Key principles include:

• Portfolio-level risk management
• Diversification across strategy styles and time horizons
• Systematic, repeatable investment processes
• Transparent governance and reporting

Portfolio Construction Process

1. Investor Mandate & Constraints

We begin by defining the investor’s objectives and structural constraints.

This includes:

• Investment objectives
• Risk tolerance and drawdown sensitivity
• Liquidity needs
• Governance and reporting requirements

This framework guides the portfolio design process.

2. Defining the Role of Managed Futures

Managed futures allocations are structured with a clear portfolio purpose, such as:

• Diversification during equity stress periods
• Volatility and drawdown mitigation
• Return stream diversification
• Adaptive exposure across market regimes

3. Strategy & Manager Evaluation

Strategies are evaluated based on:

• Systematic vs discretionary structure
• Signal and time-horizon diversification
• Risk targeting and leverage discipline
• Operational transparency and infrastructure

Selection focuses on how strategies interact within the overall portfolio.

4. Risk Budgeting & Capital Allocation

Capital is allocated using risk-based portfolio construction.

Analysis includes:

• Volatility contribution
• Correlation dynamics
• Stress testing and drawdown analysis
• Capital efficiency and margin usage

Allocations are sized based on risk contribution rather than nominal exposure.

5. Implementation

We assist with practical implementation considerations, including:

• Managed accounts vs fund structures
• Liquidity alignment
• Operational and service-provider coordination
• Phased capital deployment

6. Monitoring & Portfolio Oversight

Post-implementation oversight includes:

• Ongoing performance and risk monitoring
• Strategy drift and leverage review
• Rebalancing frameworks
• Investment committee reporting

Who We Work With

Our advisory services are designed for:

• Single and multi-family offices
• Qualified Eligible Participants (QEPs)
• Institutional investors allocating to alternative strategies

Advisory Scope

Advanced Alpha Advisers provides independent portfolio construction and consulting services.

Our role may include:

• Managed futures portfolio design
• Manager sourcing and due diligence
• Allocation modeling and risk analysis
• Portfolio monitoring and reporting

We do not guarantee investment outcomes and do not replace custodians, administrators, or legal advisors.

Next Step

We offer an introductory discussion to review:

• Existing portfolio structure
• Current exposure to managed futures
• Opportunities for diversification or optimization

Contact us to begin a structured portfolio review.