Alpha Architect, LLC

Established in 2010, Alpha Architect is dedicated to empowering investors through comprehensive education. We are an asset management firm driven by research, concentrating on high-conviction value and momentum factor strategies. Our goal is to provide “Affordable Alpha,” which refers to unique investment strategies offered at lower costs, increasing sophisticated investors' chances of success after accounting for fees and taxes. We currently provide Exchange-Traded Funds (ETFs), Separately Managed Accounts (SMAs), and white-label ETF services. We hold several core principles: 1) Transparency, 2) Evidence-Based Investing, 3) Systematic Decision Making, and 4) Client relationships that are mutually beneficial. Our firm is located in the suburbs of Philadelphia, PA, and we proudly identify as a service-disabled and minority-owned business.

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Adverse Effects of Index Replication

1 month ago | alphaarchitect.com | Larry Swedroe

—Important DisclosuresFor informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. Third party information may become outdated or otherwise superseded without notice.
Private Infrastructure as an Asset Class

1 month ago | alphaarchitect.com | Larry Swedroe

Private infrastructure refers to physical assets that provide and/or support essential services such as energy grids and data centers. Typically operating under long-term contracted or regulated business models, infrastructure assets can offer stable cash flows with relatively low sensitivity to the economic cycle, due to factors such as steady demand growth and potentially predictable cash flows, as well as providing diversification benefits.
Valuations Reflect U.S. Exceptionalism

1 month ago | alphaarchitect.com | Larry Swedroe

Conventional wisdom can be defined as ideas that are so ingrained in our belief system that they go unchallenged. Unfortunately, much of the “conventional wisdom” about investing is wrong. One example of erroneous conventional wisdom is that investors seeking higher returns should invest in countries that are forecasted to have high rates of economic growth, such as India and China.
Listing Domicile Driving Valuations

2 months ago | alphaarchitect.com | Larry Swedroe

The post-GFC period has seen two major divergences in valuations that has led to divergences in performance. The one that has received the most attention has been the widening of the spread in valuations between growth and value stocks, explaining all the outperformance of growth stocks over the period. The other has been the widening of the valuation spread between US and international stocks.
The Ability to NAV Time Interval Funds

2 months ago | alphaarchitect.com | Larry Swedroe

||Categories: Private Equity, Research Insights, Larry Swedroe, Other Insights|Highly illiquid assets trade infrequently making it difficult to know their true market value. To address this issue, funds that invest in illiquid assets create fair valuation estimates at periodic intervals. These valuation estimates determine the share values at which interval and tender offer funds issue and redeem their shares.
Investor lessons the market taught in 2024

2 months ago | alphaarchitect.com | Larry Swedroe

||Categories: Private Equity, Research Insights, Larry Swedroe, Other Insights, Investor Education, Key Research|My October 19, 2024 Alpha Architect article examined the explosive growth in private credit and sought to answer the question was there a bubble as many pundits have been warning. The following chart shows the growth of $1 invested in the Cliffwater Direct Lending Index from June 2019 (the inception date of Cliffwater’s Corporate Lending Fund CCLFX) through June 2024.
Investor lessons the market taught in 2024

2 months ago | alphaarchitect.com | Larry Swedroe |Robert Rubin

||Categories: Larry Swedroe, Research Insights, Other Insights, Investor Education, Key Research|Every year the markets provide us with lessons on prudent investment strategies. With great frequency, markets offer remedial courses covering lessons they taught in previous years. That’s why one of my favorite sayings is that there’s nothing new in investing, only investment history you don’t know. In 2024 investors were provided with nine lessons. Many of them are repeats from prior years.
Growth Predictions, Growth Surprises, and Equity Returns

Jan 24, 2025 | alphaarchitect.com | Larry Swedroe

Since the value of a company is the net present value of future cash flows, an accurate prediction of future earnings growth would appear to be the most important ingredient to successful valuation and stock selection.
Artificial Intelligence and the Risks of Harking (Hypothesizing After-the-Fact)

Jan 17, 2025 | alphaarchitect.com | Larry Swedroe

Academics have long been aware of the risks of data mining—torturing the data until it confesses. The concern is that correlation of variables doesn’t imply that the correlation is a result of causation. That is the reason that the prevailing academic standard for researchers is that they should first develop their hypothesis and predictions before testing them against the data.
Private Credit: Upper Versus Lower Middle Market Lending

Jan 10, 2025 | alphaarchitect.com | Larry Swedroe

Following the global financial crisis of 2008-2009, tightened capital standards made loans to middle-market companies unattractive for banks, shutting out most small- and middle-size companies from the bank market. In addition, the 2010 enactment of the Dodd-Frank Act made it increasingly expensive for small banks to operate, cutting off their supply of loans to small and mid-size companies—and small and mid-size banks were significant lenders to this market.