Efficient Alpha Capital (EAC) was founded in 2016 with the goal of developing investment strategies that have the potential to generate superior investment returns (“alpha”), while avoiding the high costs and fees with traditional human stock pickers (“efficient”). Furthermore, the goal was to achieve this in a way that would be available to any investor and could be implemented in a tax-efficient manner. EAC’s founder, Doug Scherrer, believed that he could leverage his experience as a successful Private Equity investor and entrepreneur to develop investment strategies for the public markets that could achieve all of these goals, by focusing on two critical elements that he knew well: fundamental financial analysis and technology.
The solution EAC developed was to partner with S-Network to develop a set of rules-based indexes that could “codify” the investment principles that Doug had learned throughout his career in Private Equity and apply them to create portfolios of public equities. These indexes can be used to create investment products, such as Exchange Traded Funds (ETFs) or Unit Investment Trusts (UITs).
Doug Scherrer Background
Doug Scherrer was born and raised in St. Louis, MO before attending college at Princeton University. Doug graduated magna cum laude from Princeton with a degree in Economics and a certificate in Finance and joined The Boston Consulting Group (BCG) after graduation. His Private Equity experience was developed at General Atlantic (GA), a global growth equity firm based in New York. In 2008, Doug opened GA’s office in São Paulo, Brazil. During his 8-year career at General Atlantic, he participated in the following investments: RiskMetrics Group, KCG Holdings, BM&F Bovespa, Qualicorp, Linx, Aceco TI, and Quality Technology Services (QTS). In 2014, Doug joined Nubank, a start-up credit card issuer in Brazil, as Chief Financial Officer. Today, Nubank is one of the most highly-valued private FinTech companies in the world. In 2016, Doug returned to the U.S. and founded Efficient Alpha Capital in Los Angeles. From 2017-2019, he was a Principal at ClearLight Partners, a lower-middle market Private Equity firm based in Southern California.
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