perspective on money management turns on the distinction between
two components of investment performance: Manager return and market
return. Where it’s positive, consistent, and sustainable, manager
return (or “alpha”) is immensely valuable and very much
worth paying for. On the other hand, market return (or “beta”)
is a simple commodity available through inexpensive index funds.
here’s the problem: The performance of most actively-managed
funds is overwhelmingly beta-driven. What does this mean
for investors? It means they pay (up!) for alpha but receive little
more—and, because of high expenses, often much less—than
market returns. This is the true mutual fund scandal, and it continues
Interlake Capital Management takes a smarter,
better approach, offering a “true alpha” discipline through the Interlake
Alpha Portfolios, and a “pure beta” discipline through the Interlake
Allocation Portfolios. These complementary programs offer diversification
not only across and within asset classes, but between active and
passive strategies as well.
In the Alpha Portfolio, Interlake uses technical
and fundamental data to identify compelling opportunities in the
capital markets. Interlake’s Alpha discipline reflects our
belief that markets are efficient in the long run but often inefficient
in the short run. In the Allocation Portfolios, our strategic use
of inexpensive, tax-efficient investment vehicles enables Interlake
to deliver superb value and state-of-the-art solutions to a broad
range of clients.
The bottom line is simple: Interlake Capital Management offers a
complete, intelligent investment program grounded in the best practices
of modern finance.