About Us

Philosophy

  • Specialist knowledge drives performance
  • The analytical process must be disciplined and focused
  • The approach must be non-biased
  • Absolute confidentiality
  • Attention to detail creates success

Organisation

  • Founded in 2008
  • Offices in New York, London, and Switzerland
  • Boutique structure that is 100% staff-owned
  • Several billion dollars in assets under advice

  • Manager screening, pre-investment research, factsheets, 'DNA' reports, due diligence, background checks
  • Ongoing process involving continuous communication with managers
  • Daily market news
  • Weekly portfolio estimates
  • Monthly manager calls, visits and portfolio reporting
  • Continuous evaluation of market opportunities, risks, identification of talent, peer group studies, counterparty risk assessment

Part One: Due Diligence

  • Choose the right managers based upon peer group analysis

Part Two: Portfolio Construction

  • Complementary combination of Hedge Fund tools with different strategies

Part Three: Monitoring

  • Watch the managers and the markets
  • Daily, weekly and monthly communication

Step 1: Select Good Managers

Initial screens rule out 90% of potential investments for reasons such as:

  • Inappropriate liquidity
  • Operational weakness
  • Poor performance

Step 2: Understand the Managers

Detailed checks to understand the managers, e.g.:

  • Check backgrounds and criminal records
  • Full operational and strategy due diligence
  • Legal review of documentation

Step 3: Monitor Portfolio

Ongoing monitoring, including:

  • Report on each manager’s performance weekly, as well as detailed monthly calls or visits
  • Leverage Review
  • Financial Statement (Audit) reviews

Step 4: Communicate Effectively

Investing with Hedge Funds and Hedge Funds of Funds provides valuable information flow from managers to inform client’s overall strategy.

Due Diligence is Risk Management

Examples of avoidable events that can cause losses:

Fraud: Operational Due Diligence can help detect and prevent fraud by:

  • Verifying service providers (Administrator, Auditor, Lawyer)
  • Comparing to peer group for anomalous returns

 

Operational Risk: Detailed Due Diligence can highlight operational risk, for example:

  • Does he have the experience and skills required?
  • Does he have sufficient Disaster Recovery in place?

 

Market Risk: Can never be eliminated, but can be mitigated by activities such as:

  • Understanding liquidity of markets
  • Internal risk management

Ongoing Process

The selection process is dynamic and based upon both quantitative screening and ongoing monitoring.

Research and Screening

  • Factsheet: terms, basic information, quantitative analysis and a media search.
  • DNA Report: more detailed examination of company, investment strategy and risk management.
  • Operational Due Diligence Review: specifically targeting areas where fraud and operational losses could occur. Onsite visit, document reviews, discussions with senior managers.
  • Full Due Diligence Report: comprehensive analysis of the entire business, emphasizing infrastructure and operations. Multiple on-site visits, legal and background checks, verification of service providers.

Examples of features of a fund that could exclude it from consideration:

  • Fee levels (including redemption fees)
  • Liquidity mismatch with underlyings
  • Manager’s own money not in product

Our Technology Platform

We have developed a proprietary database and analysis platform called PCAT (Portfolio Construction & Analysis Tool). The platform stores data on several thousand active hedge funds and hedge funds of funds.

It provides a toolkit for:

  • Advanced quantitative analysis
  • Collection and organisation of qualitative data
  • Research and due diligence
  • Creation of reports
  • Storage of fund documentation
  • Portfolio construction and modeling
  • Market and industry context
  • Tracking service providers
  • Tracking key people


A Bespoke Solution

  • Optimized to the needs of our clients
  • Web-delivered, available anywhere to Analytical Research staff
  • Secure, encrypted communication