Alexander buys and sells listed US equities and equity options using a macro top down view to identify growth drivers and risk factors that cause significant price fluctuations over a 3 month to multi-year cycle. The strategy focuses on isolating risk factors and growth drivers to specific sectors, industries and/or macroeconomic trends. Our investment team then uses bottom up fundamental analysis to drive security selection. After security selection, a concentrated book is created of best ideas both long, short, or both. We manage risk by aligning the portfolio, macroeconomic themes, growth drivers, risk factors, security selection and positive expectancy to deliver asymmetrical outsized returns per unit of risk. The baseline for each investment is an asymmetrical return profile of $3 dollars of profit for each $1 dollar of potential loss.
Grand Central Automotive Partners LP (GCAP) in partnership with Alexander Alternative Capital GP, LLC has formed a $500 million private equity fund to acquire interests in private, income producing automobile dealerships in North America. Grand Central intends to roll up more than 100 profitable dealerships across the United States with collective annual revenues above $7 billion. Using minimal leverage, the partnership looks to eliminate operational inefficiencies and unlock shareholder value by driving the bottom line on mature dealerships. Ultimately, the auto group seeks the ability to access public markets, with a possible initial public offering opportunity within five to seven years unlocking the difference in earnings multiples between the private and public market for auto retailers.