Advanced Factor & Style Decomposition

Unleash the Power of Insight
Style & Factor Analysis for Investment Professionals

AlternativeSoft's Style Analysis is a cutting-edge tool providing unparalleled insights into investment strategies - leveraging advanced statistical models to identify factor sensitivities and measure true manager alpha.

Home /Style Analysis
Factor exposure bars with alpha and R-squaredSix factor betas shown as positive and negative bars, with R-squared, residual alpha and the selection method.Factor analysis · exposuresFACTOR EXPOSURE, ROLLING 36 MONTHSEquity beta+0.58Credit spread+0.31Rates duration-0.18Momentum+0.24Value-0.09FX carry+0.150.71R-squared+3.2%Residual alpha, p.a.LASSOFactors selected
In short

AlternativeSoft's style analysis software decomposes a fund's returns into factor exposures and residual alpha, using returns-based regression, LASSO factor selection and rolling windows. Allocators use it to see what a manager is really paid for, detect style drift early and strip beta out of fee negotiations.

150+
Institutional Clients
Worldwide
$1.5tn+
AuM Managed by
Our Clients
500k+
Funds in Our
Database
20+
Years of Excellence
Since 2005
Why Choose AlternativeSoft

The Most Sophisticated Style Analysis Available

Distinguish genuine manager skill from market beta with advanced statistical models trusted by 150+ institutional allocators.

Precision & Accuracy

Leverage sophisticated statistical models to obtain precise sensitivity calculations. The most reliable data at your fingertips.

Comprehensive Analysis

Dive deep into portfolio performance with detailed assessments of manager skill. Identify strengths and areas for improvement.

User-Friendly Interface

Navigate complex data effortlessly. An intuitive platform designed with user experience in mind for investment professionals.

Factor Sensitivity
True drivers of performance
Value
Size
Momentum
Quality
Volatility
Yield
0.91
Regression R²
+3.2%
Manager alpha
+1.1%
Style timing
Factor Sensitivity Analysis

Identify the True Drivers of Fund Performance

AlternativeSoft's Style Analysis uses industry-standard regression models to calculate factor sensitivities - helping you understand whether fund returns are driven by genuine manager skill or systematic market exposure.

  • Flexible, customisable factor selection for any asset class
  • Multiple regression models aligned to portfolio characteristics
  • Monitor and predict style changes with real-time accuracy
  • Alpha decomposition: Style Timing Alpha and Manager Alpha
  • Identify funds consistently generating returns above strategic benchmarks
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Manager Alpha
Consistent outperformance over time
benchmark
+4.8%
Cumulative alpha
87%
Periods above benchmark
Manager Alpha Identification

Uncover Funds That Consistently Outperform

Go beyond raw returns. AlternativeSoft's alpha decomposition breaks down total alpha into Style Timing Alpha and pure Manager Alpha - helping you identify the best managers and maximise your investment strategy with data-driven insights.

  • Analyse manager alpha to pinpoint consistently outperforming funds
  • Refined metrics for smarter investment decisions
  • Dynamic analytics for better market forecasting
  • Risk-adjusted alpha measurement across any time period
  • Integrate style analysis into existing ODD and reporting workflows
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Client Testimonials

Trusted by Leading Institutions

"

AlternativeSoft streamlines many useful performance-based analytics including portfolio optimisation, peer evaluation, and relative analyses. One of the easiest softwares for portfolio what-if I have ever handled.

Aberdeen Asset Management
Head of Risk Management
★★★★★
"

AlternativeSoft is a practical and user-friendly tool used as part of our portfolio construction and risk management process. Their extensive support and responsiveness provides added value.

AllianceBernstein
Risk Management & Portfolio Construction
★★★★★
"

From statistical analysis to peer group analysis, FoHF portfolio construction to risk analysis and stress testing - AlternativeSoft is one of the most effective and intuitive tools I have handled.

BNP Paribas Capital Partners
Hedge Fund Solutions
★★★★★
FAQ

Frequently asked questions

What is returns-based style analysis?
A statistical method that explains a fund's returns using a set of market and style factors, so you can see how much performance came from exposures anyone can buy cheaply and how much is manager skill.
Which factors does AlternativeSoft use?
Equity, credit, rates, FX, commodity and volatility factors plus hedge fund style factors, and you can add your own. A LASSO selection step keeps only the factors that matter for each fund.
Can style analysis detect style drift?
Yes. Rolling-window exposures show when a manager's factor profile changes, which is often the first sign of a strategy change before it shows up in returns.
How does this help with fee negotiations?
If a large part of a manager's return is explained by cheap factor exposure, you have the evidence to argue for a lower fee or a performance hurdle. Many clients use the analysis for exactly that conversation.
Does it work for private funds and short track records?
It works on any monthly return series. Shorter histories produce wider confidence bands, which the software shows so you can judge how much to rely on the result.
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See AlternativeSoft
in Action

Join 150+ institutional investors. Book a personalised demo tailored to your needs.

  • Live walkthrough of the full platform
  • Tailored to your asset class and investment mandate
  • Q&A with our investment analytics specialists
  • Free trial access available following the demo
  • Dedicated onboarding and implementation support
Hedgeweek Best Risk Management Software: voted by clients 4 years running
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