Utilize Our New Style Analysis Technique in Finding Funds That Deliver Alpha

What is this feature?

AlternativeSoft's Style Analysis module now includes a new OLS regression technique with positive betas — designed as a complementary approach to the existing models. Unlike traditional constrained regression (where betas must sum to 100%), this method allows the sum of betas to be unconstrained, accommodating real-world scenarios where portfolios may be leveraged or underinvested.

The technique identifies funds with statistically significant positive betas to equity factors — the key signal for funds that are genuinely positioned to outperform in rising equity markets. T-stats and p-values are displayed for every factor exposure, so you can immediately assess statistical significance.

Watch the demo video below to see the technique applied to a real hedge fund universe, including a live example of a fund generating 1.49% monthly alpha vs the S&P 500.

What you can do

• Unconstrained OLS regression: betas do not need to sum to 100%, reflecting real-world leverage conditions
• Positive-beta constraints: prohibits short selling in the factor model for cleaner directional analysis
• Statistical significance: t-stats and p-values displayed for every factor exposure
• Multi-factor analysis: analyse exposure across public equity, private equity, government bonds and global infrastructure
• Rolling window analysis: 24-month rolling beta to identify consistency of factor exposures over time
• Alpha identification: isolate genuine manager alpha vs market factor returns with precision