Services - Investment Solutions

Hedge funds have on aggregate failed to deliver the absolute returns that are often claimed. As the number of hedge funds has increased, the aggregate level of alpha production has correspondingly decreased (we define “alpha” as the skill based returns provided by managers beyond those returns generated simply by market movements). Furthermore, hedge funds’ historical benefit as a diversifier from the mainstream asset classes has reduced as hedge fund returns have demonstrated increasing market correlation:

To mitigate this problem, we provide the following investment solutions to clients:
·Portfolio Hedging
·Access to Niche Hedge Fund Strategies

Portfolio Hedging

Bespoke hedging analysis, following detailed institutional analysis of client portfolio. This solution can take two forms:

1) An allocation to an existing managed account programme. Please enquire for details and track record.

2) Bespoke portfolio hedging, depending on the specific risk profile of the clients’ underlying investments.

Niche Hedge Fund Strategies

The recent market declines have demonstrated that hedge funds have depreciated in line with their underlying markets, as opposed to providing absolute returns and genuine diversification to investors’ portfolios. Most mainstream hedge fund strategies have correlated to 1 across this period, at precisely the time investors most needed protection from market volatility.

We are experienced in identifying those strategies that provide genuine portfolio diversification. We will provide both endeavour to locate new investment opportunities reflecting clients’ risk/reward requirements, and provide clients with access to our database of research on hedge funds that meet our stringent requirements, many of whom we have previously allocated to. Please note that we ensure continuing objectivity and alignment with our clients’ interests by receiving no introduction fee from any hedge fund: our sole source of return is from our clients.