Formed in 2015, AlphaFlow is a California registered investment adviser based in San Francisco, California.
AlphaFlow is an asset manager focused on real estate loans. We work with alternative real estate lenders who provide 6 to 12 month loans on single-family home bridge loans. We review them, purchase the very best ones available, and build highly diversified portfolios that include 75 to 100 different loans spread across 15 to 25 states, targeting yields of 7.5 to 9 percent for our clients. Basically, we take the heavy lifting out of finding quality real estate loans so our clients can reap the benefits.
Our management team is made up of real estate, finance, and tech leaders including founders of RealtyShares and Fund That Flip and one of the first key employees at LendingHome.
I. Culture of Credit Over Volume:
Because we do not believe in the predictive ability required to correctly time markets, we keep portfolios fully invested whenever attractively priced assets can be bought. If markets move however and we feel our clients are not being properly compensated for the risk they are taking, we maintain our focus on credit at the expense of volume.
II. Data-Driven Decision-Making:
Our investment team has underwritten thousands of loans. In competitive markets where we invest, we feel we can produce potentially superior investment results by combining our experience with our proprietary analytics platform to enable data to inform and drive our decision making.
Diversify widely, rebalance regularly, minimize costs; rinse, repeat. No investment is risk free. But finding the right balance between that risk and your return potential is at the heart of any solid investment strategy.
IV. Long-term Strategy:
Investing can evoke emotion that could disrupt the strategies of even the most sophisticated investors. Understanding that in investing, anything is possible and the unexpected is inevitable, we believe in a long-term strategy that focuses on avoiding losses in any market environment.
V. The Primacy of Risk Controls:
Above average gains in good times are not proof of a manager’s skill; it takes superior performance in bad times to prove that those good-time gains were earned through skill, not simply the acceptance of above average risk. Thus, rather than merely searching for prospective profits, we place the highest priority on preventing losses.
Make it easy to invest in previously inaccessible asset classes.
1. Take Ownership: If we see a problem, we take ownership and fix it without waiting to be asked. We have conviction while being open to other perspectives.
2. Help, Learn & Support: When we speak, we speak to help others. When we listen, we listen to learn. We support each other and our clients. We help each other to learn, to grow and to be a happier people!
3. Do More with Less: We are endlessly resourceful. We are nimble & scrappy. We believe you can do more, faster with smaller groups. We are not above doing any job or task.
4. Embrace, Transparency & Integrity: We honor our commitments to our clients and our colleagues. We are transparent and honest at all times.
5. Have fun! Laugh every day: We’re all in this together! Let’s have fun.