Philosophy

HEDGE FUNDS

Hedge funds provide investors the optimal vehicle to generate superior risk adjusted returns across most securities and financial markets. All securities suffer from varying degrees of pricing inefficiency from which skilled investment managers pursuing alternative investment strategies can benefit.

Free from the constraints placed on traditional long-only managers, such as restrictions on shorting, use of leverage and combinations of securities that can be held in a given portfolio, hedge fund managers can access a much broader opportunity set. Returns to hedge fund managers are thus typically less dependent on market direction and more dependent on the managers' skill at identifying and taking advantage of market anomalies.The result is an array of diverse investment strategies each of which offers unique risk-return and cross correlation characteristics. Most importantly, many alternative investment strategies offer investors returns characterized by limited downside volatility and low correlation to broader equity and fixed income markets.

FUNDS OF HEDGE FUNDS

By combining multiple hedge fund managers pursuing different strategies into a single portfolio, funds of hedge funds can construct unusually robust portfolios offering attractive risk-adjusted returns. Such programs minimize not only general market risk but also risks arising from allocations to any one single manager or strategy. Multi-manager hedge fund programs thus provide investors with a sound turnkey solution for accessing the hedge fund universe.