This paper focuses on how portable alpha can be applied by investing portfolio assets with a manager that can generate alpha and using index derivatives to acquire the desired beta exposures. Included is a discussion on implementation strategies, identifying and measuring alpha, diversification, leverage, and liquidity. Exhibits show a hypothetical example for using portable alpha, manager beta returns, performance across assets, and confidence level that value added is the result of skill, not luck, for U.S. equity small-cap and ex small-cap universes.