EAIP Concept Discussion

CONCEPT DISCUSSION:

 

The Enhanced Alternative Income Series is a non-directional, market neutral, domestic equity approach employing recognized style adherent domestic equity index funds [The ‘Index Series”], and/or independent, active,  style adherent investment managers [The “Active Series”]. The foundation strategy is predicated upon the long index portfolio to be dollar-for-dollar offset by the short index, thereby eliminating substantial market or “Beta” risk of the underlying equity portfolio.

The origin of the alternative income will be from the excess “alpha” equity returns provided from the returns generated by the long index portfolio, in combination with the excess returns generated from the offsetting short index portfolio (the Dual Alpha source); plus a minor return from the Treasury Bill portfolio, less any interest expense due to the leveraging, and short security borrowing costs.

The strategic, dynamic equity index allocations will be based upon the Enhanced Investment Partners’ Enhanced Dynamic® methodology, from the over-weighting of the in-favor (and more profitable) domestic equity style and capitalization size, and under-weighting the out-of favor (and less profitable) equity style and cap size.  Proceeds of gains and losses will be reinvested within the strategy, and will be realized and distributed upon the request of the client.

The stable value expectations of the entire portfolio are due to the dollar neutral weightings of the long and short portfolios, in addition to the short portfolio being comprised of exchange traded or index funds (and thereby avoiding normal and typical short portfolio extremes (both positive and negative) as discussed within the www.EnhancedInvesting.com website.

FUND STRUCTURES:

Enhanced Alternative Income Partners offers 4 differing investment alternative strategies:

which are discussed in greater depth herein, and on the www.EnhancedInvesting.com website.

 

IMPORTANT NOTE: THE ATTACHED HISTORIC PERFORMANCE COMPILATIONS ARE BACK-TESTED RESULTS BASED UPON THE FULL IMPLEMENTATION OF THE ENHANCED DYNAMIC® INVESTMENT OVERLAY, APPLIED CONSISTENTLY OVER THE ENTIRE STUDY PERIOD, WITH RECOGNIZED INDICES.

BACK-TESTED PAST PERFORMANCE IS NOT GUARANTEED  THIS MATERIAL REPRESENTS AN ASSESSMENT OF THE MARKET ENVIRONMENT AT A SPECIFIC TIME AND IS NOT INTENDED TO BE A FORECAST OF FUTURE EVENTS OR A GUARANTEE OF FUTURE RESULTS. THIS INFORMATION SHAOUL NOT BE RELIED UPON BY THE READER AS RESEARCH OR INVESTMENT ADVICE OR RECOMMENDATION TO BUY/SELL ANY SECURITY IN PARTICULAR. INVESTMENT FACTORS ARE NOT FULLY ADDRESSED HEREIN.  

disclosures