Alpha Transport (also called portable alpha) is an investment strategy which allocates portfolio funds to derivatives to mitigate the inherent market risk in the portfolio. A portfolio manager can generate alpha from any asset class through dedicated alpha vehicles and use this process to add value to their portfolio. For example, an investor may have a beta exposure to the bond market but would attempt to generate alpha from the equity market. In this case, the alpha is said to be transported from the equity market and placed on top of the bond portfolio. The principles that underpin alpha transport strategies have been a feature of investment approaches for some time, but their use in asset allocation is relatively new. Broadly speaking, alpha transport strategies involve structuring liquid derivatives baskets to replicate index returns and investing cash outside the index to generate alpha.