Overview

 

Overview

The investment process focuses on managers that can contribute regardless of market direction, in volatile and non-volatile markets and through changing market conditions.  Typically there will be about 20 managers with the following breakdown: 1/3 Long/Short Equity, 1/3 Low Correlation (mean reversion) and 1/3 Market Stress Managers (who are typically positively correlated with market volatility and tend to generate higher returns in difficult markets).  The research for sub-managers for this strategy is substantial and ongoing.  Managers selected to be included in this strategy are evaluated on:

  • Uniqueness and sustainability of their strategy;
  • Investment experience and qualifications;
  • Length and quality of track record;
  • Assets under management relative to their strategy;
  • Back-office experience and capabilities;
  • Overall strategy product offering (onshore, offshore, etc.)
  • Onsite due diligence visits by SFG Asset Advisors;
  • SFG Asset Advisors’ internal written research reports that include analysis on:
    • Stand-alone viability as a hedge fund investment;
    • Relevance to existing managers in the Strategy’s portfolio;
    • Peer group analysis.