AlphaTerra, llc exists to provide sophisticated investors with difficult to source, unusually gifted and completely uncorrelated alpha only managers that have been prepared for the demands of institutional asset management.
AlphaTerra™, llc is an NFA registered CPO. Leveraging AlphaTerra's founding partners' long history of institutional asset management experience, AlphaTerra exists to return the upside potential of hedge fund investing back where it belongs - with underlying hedge fund investors.
AlphaTerra exists to come alongside the hedge fund industry's most talented subset of managers. On the one hand, AlphaTerra exists to graduate promising managers into unique successes and integral allocations by sophisticated investors. Additionally, AlphaTerra runs product that allows investors the ability to participate in chosen managers in a wholly unique and upside revenue participatory fashion.
The role AlphaTerra takes with hedge funds is dependant on the manager's needs. The AlphaTerra relationship in some cases amounts to one-stop consultancy and in other instances assumes the role of full-fledged partner participation and asset deployment. What AlphaTerra is not is a 3rd party marketer. We exist for managers whose talents can be accelerated to an elite place in the hedge fund community. Graduation to an elite strategy useful to sophisticated asset allocators' portfolios demands much more than introductions. It demands deployment of specialized knowledge and a willingness to take critical steps towards growth.
Success in separating the exceptionally talented managers from the many merely compelling traders in the alternative investment landscape will always be the measure of AlphaTerra's success. We have all heard tell of the "art" of due diligence and manager selection; we at AlphaTerra do not deny that manager selection requires relentless quantitative rigor and qualitative/subjective sophistication combined with extensive experience. However, at AlphaTerra we want the quality of our managers
AlphaTerra™ believes that the landscape of alternative investments sourced through hedge funds offers a compelling and valuable investment opportunity to sophisticated investors. However, accessing the opportunity in a way that makes sense to a portfolio demands an awareness of the landscape and a means to invest that leverages the opportunity instead of deflating the upside.
After years of institutional asset deployment to hedge funds globally, there have been several frustrating take-aways. Devising the solution to these frustrations is the reason AlphaTerra was built. upon which AlphaTerra is built:
Too often the biggest "money-maker" when it comes to hedge fund investing are not the investors whose assets are being risked. In arguably the vast majority of cases, the hedge fund manager makes far more money as a function of their incentive and management fees than do the underlying investors whose capital is at risk to begin with.
Hedge funds fees are too high for returns that are too low. While most of the assets in the hedge fund space are controlled by a handful of the industry's biggest and oldest managers, quarter upon quarter the subset of the industry's most compelling smaller, and desperately innovative managers have and will continue to outperform.
Hedge fund's best returns often happen when their smaller and younger.
When all is said and done, AlphaTerra must add value to sophisticated alternative investment investors in the form of generating revenue as a function of capital allocated. In our view, returns should be a function of both underlying trading returns as well as a revenue share component associated with the success of the hedge fund itself. In fact, everything about our approach is designed to re-align the upside potential of allocating money to hedge funds back into the hands of the investors who allocate their own capital to begin with. If we help a manager get better only to see them lose money for investors we have failed. At times losing money is unavoidable, nonetheless tireless efforts both in product structuring and opportunity selection should be employed to consistently reduce risk to investors.
With that vision underpinning all we do, AlphaTerra works with managers whose value proposition is uniquely compelling. Manager's chosen represent success when they return value to a manager's investors in the form of consistent, risk-aware, volatility controlled upside returns without hidden negative skew risk.
The actual "work" of our approach takes two forms. First, presuming the selection of a uniquely promising manager, AlphaTerra works to ensure that a manager is in every way possible prepared to meet the return and risk demands of investors. Second, through a unique product offering called The AlphaTerra Fund, we work to provide access to manager returns and the upside economics of a hedge fund's business itself to our investors.
Mr. Grant Jaffarian is the CEO of AlphaTerra™, LLC. Prior to AlphaTerra, Jaffarian served as Chief Investment Officer at Efficient Capital Management, LLC. At Efficient Capital, Jaffarian ran the firm's manager search, due diligence and allocation processes while overseeing IT and Risk and serving on the Executive Management team. At peak assets Jaffarian allocated approximately 2.9 billion USD through Efficient Capital's multi-manager offerings.
Prior to joining Efficient in April 2004, Mr. Jaffarian founded Petra Intraday Trading Systems, an emerging high frequency commodity- trading advisor. His career in the alternative investments field began in 2001 as a trader and researcher at Analytic Investment Management NV of Mechelen, Belgium.
Jaffarian maintains a Series 3 license and an MBA from the University of Chicago's Booth School of Business with Management and Economics focuses. Additionally, Jaffarian holds a double B.A. in English and Economics from Wheaton College, IL.