Alpha Theory

Alpha Theory™ is a patent-pending tool, originally designed by a hedge fund, to address the challenge of developing and maintaining an efficient portfolio. The process of ensuring portfolio efficiency involves more than selecting good investments; it requires that you have the highest exposure to your best ideas and the lowest exposure to your weakest ideas at all times. Although the concept seems simple, many funds struggle to maintain an efficient portfolio because they are forced to rely on memory and mental calculations to size positions while market data constantly changes.

Alpha Theory™ gives portfolio managers a framework to leverage their instinct and research to build a repeatable system for efficiently sizing positions in real-time. One inefficiently sized position can cost a fund millions of dollars and multiple inefficiently sized positions can put a fund out of business. As a result, this discipline of efficient position sizing is the closely guarded secret and competitive advantage of some of the largest, most successful funds in the world. Alpha Theory's™ solution enhances that competitive advantage and makes it available to the entire investment community.

Company details



New York, NY

Year founded


Company size

11-50 employees


Portfolio Management, Risk Management, Behavioral Finance, Decision Making, Position Sizing, and Hedge Fund