Internet Advantage Strategy

Predicting Revenue Trends using a Company’s Internet Footprint

ZEGA – in conjunction with Alpha-DNA, a data mining firm – monitors the digital footprints of 2,200 publicly-traded companies. After four years of study, we’ve found a high correlation between the changes in demand for a company’s products and changes in the trajectory of its digital signal. We use this demand projection to identify potential revenue trends that are expected to surprise the markets.

What is it?cropped-ZEGA-FINANCIAL-LOGO-SYMBOL.png

  • An equity strategy that takes a unique research approach
  • Tracks the Digital Footprints of 2,200 publically traded companies
  • After 5 yrs of study, we’ve found a high correlation between the changes in demand for a company’s products and changes in the trajectory of its digital signal.
  • Long Short: Always long stocks – sometimes short stocks or indexes according to risk measures 

Potential Benefits:

An Innovative Equity Strategy

  • Can produce positive returns for the investor regardless of the direction of the market
  • Typically and especially when it has more short positions, it has less risk and lower volatility than the equity markets
  • Low historical correlation to the Equity or Fixed Income markets results in increased portfolio diversification

Portfolio Fit: 

Equity Long / Short

  • Excellent for many risk averse clients
  • Allocation commensurate with client risk profile
  • Best deployed in IRAs or with clients that are not tax sensitive due to regular rebalancing

Risks:

Long / Short is More About Risk Avoidance

  • The portfolio is always long positions and typically it has short positions of material size
  • Diversified portfolio of long equities and short stocks or indexes
  • Observed standard deviation of the strategy thru the end of March 2017 is less than 7%

What is it?cropped-ZEGA-FINANCIAL-LOGO-SYMBOL.png

  • An equity strategy that takes a unique research approach
  • Tracks the Digital Footprints of 2,200 publically traded companies
  • After 5 yrs of study, we’ve found a high correlation between the changes in demand for a company’s products and changes in the trajectory of its digital signal.

Potential Benefits:

An Innovative Equity Strategy

  • Is targeted to own stocks that are producing more revenue than the analyst community expects – which is more likely to produce higher performing stock holdings
  • High correlation to the Equity markets

Portfolio Fit: 

Excellent replacement for your equity allocation

  • As a diversified portfolio of stocks, it is a candidate to represent your long US Equity exposure in any asset allocation
  • Allocation commensurate with client risk profile
  • Best deployed in IRAs or with clients that are not tax sensitive due to regular rebalancing

Risks:

Long equity exposure carries market risk

  • The portfolio is long 30+ individual equities in small cap, mid-cap, and large cap holdings
  • Macro moves in the market will likely always be experienced in the performance of this account
  • Because of the growth and small cap holdings, it is typically around 25% more volatile than the S&P 500

IAS Best Equity Picks

 as of 3/31/2017MTDQTDYTD1 YearITD
IAS Gross2.2%6.8%6.8%29.3%10.8%
IAS Net*2.1%6.4%6.4%27.4%9.1%
S&P 5000.1%6.1%6.1%17.2%9.1%


IAS Equity Long / Short

 as of 3/31/2017MTDQTDYTD1 YearITD
IAS Gross2.0%3.5%3.5%9.5%5.9%
IAS Net*1.9%3.1%3.1%7.8%4.3%
Benchmark**1.2%2.1%2.1%-2.2%-0.4%
S&P 5000.1%6.1%6.1%17.2%9.1%
*Performance numbers displayed net of fees include a 1.50% fee; this fee is an estimate which reflects both ZEGA’s management fee and the fee charged by the advisor to the client.
**Benchmark for IAS Equity Long Short is the Credit Suisse Equity Market Neutral Hedge Fund Index.

Tear Sheet

Presentation

White Paper

IAS Best Equity Picks

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IAS Equity Long / Short

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CONTACT US

777 South Flagler Drive Suite 800 West Tower, West Palm Beach, FL 33401 Service@ZEGAFinancial.com

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  Disclosures  |  Copyright 2016 ZEGA Financial. All rights reserved.

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