Flexible and collaborative
As a large institutional investor ourselves, our flexible approach has been developed to address and solve the same key issues our clients face when investing in hedge funds – how to increase transparency and control, decrease costs, understand hedge fund data and access differentiated, high quality hedge fund return streams.
Our primary goal is to develop our solutions capabilities and partnership approach for our clients. We work closely and collaboratively with each of our client partnerships to offer a broad array of support and services – not just constrained to fund investments. Our iterative and constantly evolving approach allows clients to make use of our advice and benefit from our scale and experience in managing alternative investments.
Our overall philosophy is based upon five areas of expertise:
Our investment process
We devote extensive global resources to sourcing, researching, negotiating with and approving hedge fund managers that we have investment conviction in.
A key part of our approach is ensuring we cover the entire investable hedge fund universe globally, including managers who are harder to identify due to their size, location or recent entry to the industry. Each member of our investment team is a specialist in their sector and based in key financial centres, giving them an understanding of local markets.
Although we invest across all hedge fund manager sizes, we particularly focus on smaller managers whom we believe have the nimbleness to pursue opportunities not available to large managers, and who are more flexible on fees, terms and structures.
A key distinguishing aspect throughout our investment and implementation processes is our continued focus on risk management. Before any hedge fund manager is approved for investment, we perform extensive operational and investment due diligence on each proposed manager. Our risk management function is supported by a comprehensive and sophisticated set of systems to ensure the ongoing and detailed monitoring of all managers.
If we do not fully understand the risks associated with that manager and do not have the investment conviction to invest with that manager ourselves, we will not recommend them to our clients. We strongly believe that good risk management ultimately leads to superior performance relative to our peers.
Our portfolio construction process is largely driven by our detailed understanding of hedge fund managers, their return characteristics and our forward looking view of the opportunity set for each manager and hedge fund strategy. The intimate knowledge of managers, their strategies and their behavior in different market environments is the key to building a successful portfolio.
When building portfolios for our clients, we believe it is important to follow a partnership approach with our clients. Our 19 years of experience in delivering successful portfolios has demonstrated that the portfolio construction process is dynamic, continuous and on-going, and we seek to closely involve our clients at all stages of the process.