One Stone Global and its holding company One Stone Alpha and Beta, believe that a core-satellite approach to client portfolios is the best of both worlds, producing attractive alpha (excess returns generated by actively positioned portfolios) and reliable beta (market returns produced by predetermined passive benchmarks) in order to suit client investment objectives.
In practice; we believe that a passive / smart beta core with active alpha-generating satellites optimizes the risk adjusted returns for clients, in a cost effective and sustainable manner. We also believe that providing diversification through asset allocation classes is yet another means of optimizing client risk-adjusted returns.
One Stone Global, through its sub-advisors, offers a broad spectrum of passive, enhanced, smart beta and active strategies. One Stone may select a sub-advisor(s) to manage passive portfolios and utilize modern quantitative tools to manage client portfolios that closely track any of the standard indexes our institutional investor clients may choose. The sub-advisor(s) that One Stone may select for enhanced, smart beta and active portfolios will use various tools including modern quantitative and fundamental strategies to generate alpha.
One Stone and its sub-advisors often develop proprietary investment models and customized indices that use factors to produce smart beta (in other words, alpha-generating portfolios that are managed with the benefits of a passive portfolio management approach).