A key aspect of Alphamont’s ability to deliver alpha is to include more than just U.S. common shares in its investment universe. Although U.S. common shares will always make up the majority of our holdings, the ability to search for value in other equity types and internationally through American Depositary Receipts (ADRs) provides more opportunities for us to find underpriced securities.
Although we have no strict allocation mandates, we generally expect to maintain an allocation for each equity type within the ranges below:
- Common shares – (50 - 90%)
- Real Estate Investment Trust (REIT) – (0 - 15%)
- Mortgage Real Estate Investment Trust (mREIT) – (0 - 5%)
- Preferred shares – (0 - 20%)
- American Depository Receipt (ADR) – (0 - 20%)
If any managed portfolio allocations were to deviate from the ranges above, clients would be informed beforehand and have the opportunity to revoke Alphamont's management of their portfolio.
For liquidity and risk management purposes Alphamont only invests in securities listed on the NYSE or NASDAQ.