DYNAMIC ALPHA MODEL-DESCRIPTION

Description | Approach | Objective

In 1996, L.A. Capital's principals developed a research process for stock selection that recognized the opportunities and the limitations of traditional investment research. The fundamental goal was to develop a stock selection model which would objectively and accurately identify stocks with the highest expected returns without falling into the trap of making false assumptions about the future based on the experiences of the past. To accomplish this goal, the model would have to dynamically adapt to the current market environment. The result of this work was the Dynamic Alpha Model.