We use alpha management to raise returns in the AP7 Equity Portfolio. Our primary sources of alpha are pure alpha management of equities and active currency management.
Alpha equity management involves generating returns using a "long-short" model whereby we take long positions via traditional equity purchases and short positions via short selling, which means that we borrow shares and then sell them. We use the funds raised from short selling to finance our long positions. This model means we do not need to allocate any fund capital to our alpha management.
