Alpha Capture Programs
Alpha Capture programs are innovative systems deployed by large market participants to generate alpha—market-independent returns—through signals provided by a diverse network of contributors. These programs often manage billions of dollars in assets and involve hundreds of contributors, including individuals and teams with varying models, experience, views, and geographic perspectives. The diversity and dispersion of these contributors allow well-structured Alpha Capture programs to achieve highly favorable risk-adjusted returns. Contributors are generally independent of the program and quantify their conviction in each signal they provide. Compensation is tied directly to the value their signals add to the program’s overall performance.
Notably, contributors often participate in these programs without requiring regulatory oversight, enabling them to engage in Alpha Capture alongside other employment. Additionally, contributors have the opportunity to establish an independent track record, which can pave the way for direct funding from program managers or even launching their own fund management businesses. Career Capital is a recognized expert in the Alpha Capture space. We have participated in several programs as contributors, leveraging our deep market experience and expertise. In addition, we have consulted with Alpha Capture programs to:
● Optimize contributor selection processes.
● Design and refine compensation structures.
● Enhance program development for maximum signal utilization.
Our experience uniquely positions us to assist both contributors seeking to excel in Alpha Capture and program managers aiming to improve the efficiency and performance of their platforms.