Despenso creates and supervises actively traded portfolios named ALPHA(MM/YY) of securities that consist of select exchange-traded funds (ETF) and individual stocks chosen according the following criteria:
1. First economy government bonds ETF (low risk, low income)
2. Emerging economy high yield ETFs (medium risk, high income and growth)
3. Individual blue chip Stocks on North American and European markets, selected according to the Alpha principle
The Alpha principle:
Our Capital Market investments are in stocks which comply with 3 fundamental criteria:
a. Enterprise value lower than market capitalisation (undervalued by the market according to our proprietary evaluation principle)
b. Solid history (at least 10yrs) of dividend payments around or above 5% of current stock value.
c. Stock value currently not within 20% of its 2 years peak value.
On occasions, based on our experience, a security may be selected from the Rising or Declining Trend levels. Positions are typically liquidated at or near the Overvalue level. Proceeds from dividends (net of retained Cypriot applicable taxation) and liquidated positions will typically be directed toward new purchase of positions in securities which abide to the same principles. Despenso maintains a watch list of Alpha securities in the NA and EU markets.
Risk management and capital preservation are a central objective of our equity strategies. Portfolio Managers will allocate capital to different risk buckets (high, medium and low) based upon different market environments and in response to macroeconomic data. Each strategy uses this consistent top-down approach with a bottom-up stock selection in order to optimize returns.
Capital Market Products
Alpha Global Aristocrats
Diversified long equity fund of Alpha Blue Chip stocks with typical exposure between 5% and 10% for each stick
Strong focus on downside protection and risk management
Overall net long exposure driven by top down macro view while security selection is driven by a fundamental bottom-up research focused on a differentiated view in order to generate returns on both dividend and capital growth
Alpha Tier Zero
Simply put: Tier Zero is when computers stop becoming simply more powerful, and become “smarter” and more useful in our every day lives.
The signs today are unmistakable. The technology is being used in everything from self-driving cars, to robots that clean our homes, to curing cancer. In time, we believe it’ll be a “fabric” that moves across all technology and every industry.
We’ve identified three core trends we believe will be at the centre of Tier Zero in coming years:
1. Explosion of Data
2. Deep Learning
3. Smarter Devices
At Despenso we have created an investement strategy that identifies along the Tier 0 companies which enable the megatrends and hopefully will be the Googles, Apples, Facebooks, amazons of the (not so far) future.
Currency Peak Scavenger
Each portfolio is made up of stocks denominated in different currency, mainly EUR, USD and GBP, but also CHF, JPY, HKD, CNY, etc
We focus on neutralising the effect of currency fluctuation on our portfolios, however when certain historical peaks appear we take advantage of it.
Despenso has developed its own currency predictive tool constantly monitoring major currency fluctuations and acting on certain well identified historical patterns. This way some extra growth is extracted by the currency exposure dynamics of the different portfolios