Alpha Centauri Risk

Our Focus

For clients who want to collect long-term outperformance of factor / risk premia and like to construct their portfolios in direct responsibility

Economic background

The design of many strategies available in the market seems to be flawed at a closer look – often the strategies are optimized in retrospect to the financial crisis (filter / stop loss etc.).

The risk premia strategies are foremost defined by their economical rational.

Purity of premia

As these strategies are not trading strategies, the performance does not take center stage. Because of this – individual risk premia may deliver “return-free risk” for years.

Risk characteristics

The specific characteristics of asset classes are often not being taken into account sufficiently in designing risk premia strategies. The result is an absorption of other systematic risk factors beyond the target factor premia.

Strategies from Alpha Centauri consider the specifics of asset classes across risk characteristics.


The rebalancing frequency of risk premia strategies is too low in numerous offers. As information in capital markets is being processed at a higher speed as in the past, long-term backtests are not representative any more.

The frequency should essentially be defined by the asymmetric character und the transaction costs.


In comparison to offers in the marketplace we offer more transparency for every single premia strategy by providing monthly updated Factsheets up-to-date risk snapshots historic risk analysis scenario analysis


At the moment risk premia strategies are available for government bonds (interest rate and CDS), corporate bonds (CDS) and stock indices, in well-known categories like value, carry, quality, momentum, volatility and in part thematic premia.

Polls, conducted by RUSSEL and Edhec in 2015 give insight into the reasons why European investors are reluctant to invest into risk premia.
The answers can be assigned to four main building blocks:

  • Information deficits with respect to theoretical, fundamental and economic rational
  • Historical risk, mainly track record, explanatory risk factors, relative risk with respect to benchmarks
  • Actual risks of factor indices that is risk analytics and - attribution, unintended side effects, (i.e. sector exposures)
  • Investment strategy, decision support for active management and factor rotation

  • We try to cover a lot of these points and hope to give investors some clues for their investment decisions with our articles and risk reports.

    what is different

    "purity" of premia takes center stage
    locally sourced globally allocated

    Existing factor indices exhibit a broad range of deficits. Based on our experience in factor investing we are able to address and resolve most of these problems. Our Focus is on the purity of the risk premia not on the backtest results. Our solutions offer access to single premia and multi market baskets from different asset classes and combine clearly defined characteristics with a risk-based approach to premia extraction to one of the best solutions in the marketplace. In comparison to our competitors we additionally offer our investors extraordinary transparency through monthly performance, risk and scenario analytics

    • Factsheets
    • Actual Risk Scans
    • Historical Risk Analytics
    • Scenario Analytics (coming soon)

    S&P Global – Market Intelligence

    FIS Global – Empowering the Financial World


    Alpha Centauri Investment Management GmbH

    EUREX Exchange

    Equity Strategies

    Long Only - Absolute Return - Long / Short

    Equity Carry

    iSTOXX Europe Long Only
    iSTOXX Europe Market Neutral
    ISECFER Index

    ISECMEEN Index
    others on request

    Equity Momentum

    iSTOXX Europe Long Only
    iSTOXX Europe Market Neutral
    ISEMFER Index

    ISEMMEEN Index
    others on request

    Equity Quality

    iSTOXX Europe Long Only
    iSTOXX Europe Market Neutral
    ISEQFER Index

    ISEQMEEN Index
    others on request

    Equity Risk

    iSTOXX Europe Long Only
    iSTOXX Europe Market Neutral
    ISERRER Index

    ISERMEEN Index
    others on request

    Equity Size

    iSTOXX Europe Long Only
    iSTOXX Europe Market Neutral
    ISEZFER Index

    ISEZMEEN Index
    others on request

    Equity Multi-Factor

    iSTOXX Europe Long Only
    iSTOXX Europe Market Neutral
    AC Equity Long Short
    ISEXFER Index

    ISEXMEEN Index
    others on request

    Equity Value

    iSTOXX Europe Long Only
    iSTOXX Europe Market Neutral
    ISEVFER Index

    ISEVMEEN Index
    others on request

    Equity Thematic

    AC Dividend Europe Long / Short
    AC Dividend Risk Premia
    on request

    other assetclasses

    Long / Short

    “We are delighted to collaborate with Alpha Centauri in developing the iSTOXX Europe Factor Indices. As part of the index family, the iSTOXX Europe Single Factor Indices offer a very unique and innovative way to capture risk premia while simultaneously minimizing distortions,”

    said Matteo Andreetto, chief executive officer, STOXX Limited.

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