Alpha Theory

A platform for fundamental managers to extract more alpha from their research by turning their intuitive position sizing into a repeatable process.

[Alpha Theory @Alpha_Theory]

@West4thCapital Congrats and best of luck! Unsolicited plug: wire in your sizing process pre-launch, not after. Derek Brown did it at Dardanelles. Price targets, probabilities, sizes on every name. ~99% gross covered, top-decile freshness. Allocators noticed! https://t.co/YJiw7DMYvc

[Cameron Hight @CameronHight]

Here's a question that sounds simple but trips up most PMs we talk to:
𝗜𝘀 𝘆𝗼𝘂𝗿 𝘀𝗶𝘅𝘁𝗵-𝗯𝗲𝘀𝘁 𝗶𝗱𝗲𝗮 𝗮𝗹𝘀𝗼 𝘆𝗼𝘂𝗿 𝘀𝗶𝘅𝘁𝗵-𝗹𝗮𝗿𝗴𝗲𝘀𝘁 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻?

https://t.co/WCVOPM1SEL

[Alpha Theory @Alpha_Theory]

Most fundamental managers focus performance discussions on stock selection. This data tells a more nuanced story.
See full report👉 https://t.co/2xRS9E71KW

[Alpha Theory @Alpha_Theory]

It pays to keep things fresh.

Our 2025 review across 300+ funds shows a pattern: portfolios with more frequently updated price targets generate higher forward returns.

Read the full annual review here: https://t.co/tqnCUvkYWu

[Alpha Theory @Alpha_Theory]

Elite stock pickers can still underperform when expected returns aren’t effectively translated into position size. It pays to invest in a process that translates it.

That’s the core lesson from our case study on Dardanelles Capital.

Full case study: https://t.co/zuvvXJCOva

[Alpha Theory @Alpha_Theory]

Launching a hedge fund is not easy.

Competition is fierce from large spinouts, capital raising is slow, and performance pressure is constant.

That’s why the story of Dardanelles Capital stands out.

Read the full case study: https://t.co/IQIyk5kq0q

[Alpha Theory @Alpha_Theory]

Cameron Hight is in Miami this week for iConnections Global Alts 2026!​

We’re looking forward to an exciting few days of networking and sharing insights with the best in the industry.​

Learn more about the event here:​ https://t.co/VzoLiYWMSq​

See you in Miami!

[Alpha Theory @Alpha_Theory]

Your smallest positions might be your worst ones.

In our latest analysis, farm names — the tiny “just keep it in the book” positions add up to a significant performance drag.

Cameron Hight breaks down the data in his newest post.

Read it here: https://t.co/OL2CMFcZXi

[Alpha Theory @Alpha_Theory]

Sometimes the best position size is 0%.

What if you had no farm names in the portfolio? What if you were tracking them by conviction only?

The drag from low-conviction positions is real.

Read the new post by Cameron Hight, CEO of Alpha Theory:https://t.co/c52coQ1xPv

[Alpha Theory @Alpha_Theory]

Most allocators ask managers about their research process: stock selection, risk management, and that all-important edge.

Few ask about sizing.

Learn how to find managers with great position sizing skill: https://t.co/5XjhQdOmJf

[Alpha Theory @Alpha_Theory]

Allocators build elaborate processes for vetting managers, yet most miss the biggest sources of performance: position sizing.

Our data shows that managers who size positions based on a documented process generate 4x higher alpha.

Read the full blog: https://t.co/sWgvqcbSbd

[Alpha Theory @Alpha_Theory]

We’ve seen humble discipline pay off handsomely: the best source of alpha isn’t in exotic data or complex models, it’s hiding in how ideas are sized.

Our new article explores the changing relationship between manager and allocator.

Read the full article: https://t.co/favWHkyk2r

[Alpha Theory @Alpha_Theory]

Every fund spends millions looking for external edge.

Few invest in their own process.

Our latest piece explains why sizing discipline drives returns and how to turn your research into portfolio weights with Fundamental Optimization.

Read it here: https://t.co/kJFUGlHFH4

[Alpha Theory @Alpha_Theory]

Think of investing in baseball terms: Stock picking is your batting average, sizing is your slugging.

Our guide explores how classical models, mean-variance, equal-weight, and Fundamental Optimization outperform gut feel and intuition.

Read the guide: https://t.co/md5SzdoEab

[Alpha Theory @Alpha_Theory]

Position sizing is the most underappreciated skill in investing.

Our new beginner’s guide to position sizing provides simple examples and looks at models that actually work.

Position Sizing: An Investor’s Guide to the Most Critical Skill in Investing: https://t.co/pw1xY8T68j

[Alpha Theory @Alpha_Theory]

Powerful collaboration, amplified results. We’re excited to work with CenterBook Partners to build an aligned buy-side Alpha Capture platform.

Discover how we are shaping the future of institutional investing.

Download the Alpha Capture Position Paper: https://t.co/seeNx6oEbA

[Alpha Theory @Alpha_Theory]

Managers will not stop spending on data, experts, or conferences. Nor should they.

But without “sharpening your saw”, you’re still leaving alpha on the table.

👉 Full blog: Sharpening the Saw: https://t.co/Dr0zP0OCfB

[Alpha Theory @Alpha_Theory]

@CameronHight will be attending the 12th Annual Capitalize for Kids Investors Conference in Toronto!

If you’re attending, connect with Cam to pick his brain on the latest trends in FinTech, Hedge Funds and position sizing!

Click HERE to meet with Cam:
https://t.co/NF3lnl6xnV

[Alpha Theory @Alpha_Theory]

Hedge funds are spending $15B+ on alternative data.
Experts cost $1,000 an hour.
Global research trips can rack up millions.

Sometimes the best alpha isn’t out there. It’s here, hidden inside your portfolio.

👉 Full article: Sharpening the Saw https://t.co/FcYyOiILej

[Alpha Theory @Alpha_Theory]

Hedge funds spend billions on data, expert networks, and travel all in search of edge. Yet our data shows the highest ROI often comes from something far less glamorous: improving your own investment process.

👉 Read our latest article: https://t.co/9WKiUdwTtc