ALETHEA CAPITAL MANAGEMENT, LLC

Alethea Capital Management, LLC is an independent Registered Investment Advisor (RIA) based in San Diego, California. Founded by Peter J. Johnson, the firm operates as a wealth management practice that emphasizes active portfolio management and risk mitigation. The name "Alethea" is derived from the Greek word for truth or disclosure, reflecting the firm's commitment to transparency in its investment process. Alethea Capital Management serves high-net-worth individuals and families, operating under a fiduciary standard to provide objective advice. The firm files its institutional holdings with the SEC under CIK #0001549408. Unlike many RIAs that rely solely on passive buy-and-hold strategies, Alethea Capital Management distinguishes itself through a more dynamic approach to asset allocation. The firm believes that market inefficiencies and macroeconomic trends create opportunities for active management to enhance returns or protect capital. For external analysts, the firm's 13F filings provide a transparent record of how these tactical views are implemented using public market securities.

The investment strategy at Alethea Capital Management combines top-down macroeconomic analysis with bottom-up security selection. The firm generally constructs portfolios that are responsive to changing market conditions, rather than adhering to static asset class weights. The investment committee typically utilizes a mix of Exchange Traded Funds (ETFs) for broad market exposure and individual equities or sector-specific funds to express high-conviction thematic views. An analysis of the 13F Portfolio Composition often reveals a portfolio that shifts its defensive and offensive posturing over time. Holdings may include a diverse array of asset classes, including domestic and international equities, fixed income, and commodities (via ETFs). The firm may also employ tactical rotations into specific sectors—such as technology or energy—based on their assessment of the business cycle. This active management style results in moderate turnover, as the firm adjusts positions to manage risk or capture emerging opportunities. The goal is to participate in market upswings while attempting to sidestep major drawdowns.

Alethea Capital Management represents the active segment of the independent RIA market. The observable data indicates a manager willing to deviate from the consensus to protect client capital. Analysts reviewing the Sector Allocation History will likely see significant shifts that correspond to the firm's macroeconomic outlook. For an allocator or peer, the 13F data serves as a record of the firm's tactical execution. Does the portfolio successfully de-risk ahead of market corrections? The Historical Track Record available through backtesting allows for a quantitative evaluation of whether their active approach delivers superior risk-adjusted returns compared to a passive alternative.

Risk management at Alethea Capital Management is a dynamic process. The firm views risk not just as volatility, but as the potential for significant capital loss during bear markets. Consequently, the firm may raise cash levels or increase allocations to defensive assets (like Treasury bonds or gold) when its risk models signal elevated market danger. This flexible approach aims to produce a Volatility Profile that is distinct from, and ideally lower than, the broader equity market over a full cycle. However, active tactical management introduces the risk of "whipsaw"—moving to defense too early or missing the initial stages of a recovery. Therefore, the Max Drawdown Depth is a critical metric for evaluating the success of the firm's timing decisions. Platform analytics can be used to compare the firm's historical performance during known stress periods against a static 60/40 benchmark to assess the value added by their active adjustments.