Nearly a year after its inception, Zurich-based boutique Alpha Leonis Partners is focusing on small-cap private equities, digitalisation and maintaining momentum.
The private equity and hedge fund advisory firm was founded in mid-2017 and is led by CEO and CIO David Pinkerton, who was previously CIO at Falcon Private Bank. It caters largely to philanthropic clients who migrated from Rising Tide Foundation Group, where many team members previously worked.
Pinkerton said the firm’s 2018 outlook has a focus on small-cap private equities, favouring them over ETFs and large-cap stocks.
‘Private equity markets grow because they’re efficiently allocating capital to companies that need it. With ETFs, when you have all that money going into an index, companies get forgotten. We don’t hate the S&P 500, but we support the growth of smaller companies.
‘If you look at small cap verus large cap, small cap outperforms in the long run. Innovation and entrepreneurial alignment happens more in smaller companies.’
Pinkerton also said he is positive on companies who are embracing digitalisation. However, the firm isn’t ready to embrace cryptocurrencies just yet. He said: ‘We’ve looked at crypto in the past, but right now they’re in a corrective phase and will probably have to consolidate sometime in the future. We do believe in blockchain, but not for right now. That’s on the horizon.’
Pinkerton added that Alpha Leonis has no immediate growth plans for the company in 2018, but is taking a opportunistic stance. In the meantime, he is focused on preserving momentum and maintaining a responsible strategy.
‘Maintaining momentum is imperative, like the launch of a rocket. But high-speed decisions cannot erode the quality of our work either.
‘It’s important to make sure you maintain your perspective about your fiduciary duty to your client. If you stop looking at it from that viewpoint, you’re on a slippery slope.’
Alpha Leonis featured in Citywire Switzerland’s 2017 end-of-year publication