Patent ID: 7685047

Claim:
A method for investing funds of an investor, the method comprising: conducting, by a computer system, a number of computer-implemented simulations to determine return characteristics for potential investments of the funds, wherein the return characteristics comprise expected returns and at least one distribution characteristic of the expected returns for the potential investments, wherein the computer system comprises a processor and computer readable medium, and is programmed to perform the simulations; investing the funds of the investor in a portable-alpha investment that comprises: investing a first portion of the funds in an alpha-generating portfolio based on the computer-implemented simulations, wherein the alpha-generating portfolio is a portfolio for generating a return, a portion of which comprises an alpha return portion that is a return over a passive return of a benchmark, and wherein the alpha-generating portfolio comprises at least one private equity investment and at least one non-private equity investment; estimating one or more first embedded beta exposures of the alpha-generating portfolio using one or more computer-implemented quantitative analyses, wherein the computer-implemented quantitative analyses are performed by the computer system, wherein the computer system is programmed to perform the one or more quantitative analyses; making one or more derivative investments in a benchmark portfolio, wherein the one or more derivative investments generate one or more second embedded beta exposures; and wherein the investments in the alpha-generating portfolio and the benchmark portfolio are allocated such that the sum of the one or more first embedded beta exposures and the one or more second embedded beta exposures approximates a target aggregate exposure of the investor.