Separately Managed Account (SMA)

AlphaFox Capital Management, LLC (AFCM, the “Adviser”) primarily provides fully automated and algorithm-based Separately Managed Account (SMA) services to Individuals and High Net Worth Individuals. In this service, Clients will retain full ownership of their own brokerage account. AFCM does not maintain custody of Client accounts.  Please contact us for further information regarding this service.

What is SMA?

SMA is a professionally managed investment portfolio of securities directly owned by the individual investor and managed according to a specific style or discipline. It is an investment vehicle composed of stock and bond funds, individual stocks and bonds, and options on securities. With an SMA, investors benefit from direct ownership of securities, versus investing in a mutual fund or exchange-traded funds (ETFs), where your money is pooled with that of other investors. SMAs can offer customized portfolios, professional management and oversight, flexibility, transparency, diversification, tax efficiency and asset allocation and more.

The Benefits of Managed Accounts

Separately managed accounts (SMAs) are the investment vehicle of choice among many high net worth individuals seeking sophisticated investment solutions and direct ownership of securities in their accounts.

Establishing an SMA is a consultative process. SMA investors typically work with their financial professionals to establish personal objectives and investment plans. SMA owners also may have access to the portfolio manager, a service usually reserved for institutional clients. A higher level of service than other retail investment solutions is typical, and may include periodic reports summarizing account activity and performance, as well as in-person meetings, conference calls and written commentaries.

Unlike mutual funds, exchange traded funds and other pooled vehicles, SMA investors can:

  • Impose reasonable investment restrictions on the management of their accounts
  • Impose reasonable limits on the amount of gains or losses recognized in their accounts

Model Strategy

AFCM’s proprietary Quantitative Balanced Growth Strategy is a disciplined, statistically driven, fundamental-data-based strategy aiming to deliver success in long-term investing. The strategy seeks to provide consistent, risk-adjusted total returns over time. The strategy is based on AFCM’s cutting-edge quantitative equity, fixed income, option models implemented with automated trading algorithm. The live performance track records of the strategies is shown in this link.

Investment minimum

An account minimum of $200, 000 is required to obtain this service.