Dick Pfister, Founder & CEO, AlphaCore Capital sits down with Julie Cooling, Founder & CEO, RIA Channel to discuss his new firm that delivers due diligence on alternative investment strategies for financial advisors.
AlphaCore was created two years ago and has already attracted over $300 million in assets from advisors focused on alpha generating strategies as core portfolio components, with ETFs or beta strategies used as satellite components.
Pfister’s team of research analysts and specialists provide portfolio construction assistance to advisors seeking to build portfolios beyond a typical 60/40, equity/fixed income mix.
Prior to AlphaCore, Pfister was an original partner at Altegris, another alts shop with now close to $3 billion in assets under management. Alternative investments don't always shine in bull markets.
Nonetheless, non-correlating assets are key to diversification, as they help to lower overall portfolio risk.
Pfister's new firm is also product agnostic.
They are alternative investment manager experts, and perform due diligence and portfolio construction for advisors. This puts them on the same side of the table with advisors, and frees up their time.
Best in breed outsourcing is not a new concept, however using alternatives as core portfolio positions certainly is a newer way to construct core/satellite models.
Typically such models use long only active strategies or passive strategies via mutual funds or ETFs. As advisors seek to improve alpha generation for clients, AlphaCore certainly could be well positioned to help do just that.
