A strategy of allocating funds within a portfolio using derivatives to neutralize the market risk inherent in the portfolio. It aims to obtain alpha returns while neutralizing the market risk. A portfolio manager or investor can generate alpha from any asset class through dedicated alpha-engines or vehicles. 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. A hypothetical trade applying alpha transport may involve taking a long position in country- or geographic area-specific portfolio, and a short position in one domestic futures index, while shorting a foreign futures index. In this sense, alpha transport allows investors and managers to add value to their portfolios from other sources.

This strategy is also known as portable alpha.