Dick Pfister, Founder and CEO of AlphaCore Wealth Advisory, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss the institutional research and technology required to meet the goals of family offices allocating to alternative investments.
AlphaCore is a ten-year old firm that has historically grown organically. To boost growth inorganically, AlphaCore acquired Callan Capital, a firm specializing in the ultra-high net worth and family office space. The Callan Capital team benefits from AlphaCore’s expertise in institutional research.
AlphaCore believes that wealth advisors should build goals and objectives for clients that encompass financial planning, tax planning, estate planning, and charitable giving. Pfister notes that, in order to meet their financial goals, high net worth investors need to invest in stocks, bonds, and alternative investments. AlphaCore believes that alpha generators should be the core allocation with market beta built around the core allocation.
AlphaCore built the factorE software that evaluates the factor risks held in portfolios that include alternative investments. The platform was sold to iCapital, which is now offered as Architect. These type of tools can visually demonstrate the role that alternative investments can play in the diversification of client portfolios. To intelligently allocate to alternatives, investors need to investigate the factor risk of each investment and how it duplicates or complements the current portfolio exposures.
AlphaCore is a member of the Schwab Advisor Network, where Schwab refers clients to independent investment advisors. Pfister appreciates the referrals and wants to provide continued high-level service to Schwab clients.
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