What is Active vs.
Passive Management?

Active

Passive

Has a tendency to be short term investments

Attempts to exceed the performance of a selected benchmark

Searches for mispriced securities

Long term approach of buying and holding

Mirrors a market index such as the S&P 500 Index and does not attempt to beat the market

Supporters believe that active managers can not consistently out-perform the passive index

We believe that active management can significantly outperform passive management using the methodology we developed at alphaoptimization.com.

Our goal is to exceed the performance of the S&P 500 Index, a passive index that measures the performance of 500 of the largest corporations in the United States.

By measuring momentum and value simultaneously, we identify stocks with a higher probability of a profitable trade.

We sell stocks when the alpha begins to break down.