Is it possible to gain serene exposure to the US equity market?

Table of contents

I. Equity market alpha

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The U.S. stock market is known for both its profitability and its volatility with an average annual return of +10% for the Nasdaq over the past 20 years.

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Only a minority of stocks outperform the market every year. This performance is highly volatile and discourages investors from keeping the same stocks for several years.

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II. Purpose of the strategy

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Wealthy people are conservative and have businesses in real estate, finance or other areas that generate income for them. They want to diversify but can't get as much direct exposure to the US equity market because of the volatility.

Investing is an expertise, which is why I have created a systematic strategy that selects U.S. stocks every month on the basis of fixed quantitative criteria.

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The strategy provides:

• Direct exposure to the upside of the U.S. market. Each month, the strategy is long of three U.S. stocks and a commodity.
• Lower downside during systematic crisis
• Simplicity, long only and monthly rebalancing </aside>

III. A. Strategy versus benchmark (2002-2025)

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During the past 20 years, Alpha Conservation outperforms the Nasdaq with consistent 23.3% annual returns against 14.4% and with highest risk-adjusted performance (1.07 Sharpe ratio), while maintaining comparable volatility with a lower drawdown.

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III. B. Strategy versus benchmark (2015-2025)

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Alpha Conservation delivers superior performance with 24.3% annual returns and exceptional risk-adjusted returns (1.26 Sharpe ratio), while achieving the lowest volatility (19.2%) and smallest maximum drawdown (-24.1%) compared to both NDX and Berkshire Hathaway.

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III. C. Strategy versus benchmark (2020-2025)