Strategies

Each client relationship is distinct and every portfolio is tailored to meet clients' needs and goals. We primarily implement our private in-house strategies but may also utilize external funds and strategies to achieve a desired portfolio composition. We are able to leverage the vast global resources of our clearing firms in finding the most effective and efficient financial instruments in developing client portfolios. This is generally done through individual securities, exchange traded funds, mutual funds, hedge funds, private equity, real estate, and other alternative investment opportunities.

We also manage an options overlay strategy called “Alpha Through Volatility” which is designed to provide absolute returns independent of market direction and volatility.

The strategies we employ are dynamic and change with the market cycles as well as with client life events. Please click on the links below to learn more about our strategies and offerings.

Fixed Income Portfolios

At Sky Alpha, we design customized fixed income portfolios tailored to each client’s specific objectives and risk tolerance. Fixed income markets involve a range of risks—including credit, duration, and reinvestment risk—that require thoughtful, strategic management. Our expertise spans from straightforward cash management to more sophisticated income-generating solutions. After a decade of historically low interest rates, today’s bond investing environment demands a disciplined and personalized approach. For example, we employ institutional-grade strategies similar to those used by large banking institutions, which allows us to offer money market rates that are significantly more competitive than those typically offered by traditional banks.

After our initial consultation we can determine what your needs are and formulate a strategy to best achieve these goals. We can use one of our taxable or tax-free models as a core and then build around it in order to tailor it for optimal risk/reward. We can also implement both laddered and barbell approaches that can mitigate much of the risk associated with potentially higher interest rates in the future. Whether or not tax-free bonds make sense on a taxable equivalent basis varies depending on current tax brackets, as well as supply demand factors that affect the available rate on tax-free municipal bonds.

Equity Models

We believe that equity investing should be tailored to each individuals specific needs, goals, and risk tolerance. It is important to analyze a clients overall portfolio to determine the proper allocation and style of equity investments. We have created equity models focused on different objectives which can be used as part of an overall investment portfolio. To learn more about each model click on the links below.

Alpha Through Volatility Options Strategy

The Alpha Through Volatility Strategy (ATV) is an absolute return strategy designed to attempt to consistently generate positive returns and potential Alpha while maintaining very low correlations with both equity and bond markets. Option overlay strategies provide an attractive risk/return profile over time and serve as a strong complement to traditional long-only equity portfolios. While these strategies may underperform the broader market during prolonged rallies or sell-offs, they help achieve non-correlation and balance within an overall portfolio.

Developed over 25 years ago, ATV was designed for investors seeking an alternative to traditional fixed-income solutions. The strategy offers daily liquidity while targeting attractive returns, low volatility, and minimal sensitivity to interest rates and equity markets. ATV has been refined to adapt to various market environments and operates within predefined risk parameters, which are closely monitored to ensure necessary adjustments in response to changing market conditions.

Typically, ATV is utilized as an overlay to a portfolio that includes cash and/or marketable securities. Due to the inherently aggressive nature of derivative investing, the ATV strategy is intended for accredited investors with significant market experience. Additionally, the ATV strategy cannot be implemented in retirement accounts.