This material is for informational purposes only and the strategies listed are only available to investors who meet certain suitability and investment requirements.
Managers focus on opportunities in the global debt markets, which include investments in public and private debt securities, loans, equities and derivatives thereof. Strategies may include, but are not limited to, Credit Value, Direct Lending, Distressed, Structured Credit and Trading Focused.
Using this strategy the Manager seeks to profit by realizing price differentials that are perceived to exist between the current market price of a security and its expected future value based upon the occurrence of a specific event, which may include but are not limited to announced corporate actions such as mergers, consolidations, acquisitions and liquidations. Other event driven strategies seek to benefit from events such as credit events, political events, or other situations which may have an effect on the value of the securities or financial instruments traded. Short selling, options hedging and other techniques are generally used to capture price differentials.
This strategy comprises two major investment processes: discretionary and systematic. With respect to both strategies, Managers tend to focus on macro-economic opportunities across numerous markets and instruments. Investments may be either long or short in cash securities, futures contracts, derivative contracts or options, and may be in equities, fixed income markets, currencies or commodities (e.g. agricultural products, metals, energy products). Managers that follow systematic strategies tend to invest in numerous markets based on quantitative models and tend to follow investment trends and take positions based primarily on the output of their models. Managers that follow discretionary strategies tend to rely more on a fundamental or qualitative approach to their decision making and tend to have fewer trade ideas outstanding at any time than systematic Managers.
Managers employ research intensive efforts to identify long and short positions in the equity markets and seeks to outperform the relevant equity markets with reduced volatility. This strategy seeks relative value opportunities primarily by taking long and short positions in the equity markets and the portfolio is, generally, constructed to be as fully hedged as possible. Arbitrage opportunities may result from changes in the relative valuations of specific stocks or baskets of stocks. This strategy also includes statistical arbitrage, which employs quantitative and computational investment techniques which seek to identify statistically robust market inefficiencies in global equity markets.
Long bias equity investing consists of a core long holding of listed and unlisted equities (the size and number of investments in unlisted securities are expected to be relatively small) and seeks to outperform the relevant equity markets. Managers may also make investments in equity derivatives such as futures, option, and warrants, in addition, managers employing this strategy can hold cash or cash equivalents when this is considered appropriate, in particular to mitigate market risk.
Niche strategies are considered to be specialist strategies that do not easily fit within established hedge fund classifications and include Tail-Risk Protection, Volatility Strategies, Directional Commodities, Active Private Equity and Reinsurance, plus certain illiquid exposures.
Relative value funds encompass a range of funds that invest in equity, bonds, commodities and options thereof, by simultaneously taking a long position in an undervalued security and a short position in a similar security (by e.g. duration), that is overvalued relative to the long position. These types of strategies aim to profit from the re-pricing of one or both positions, as opposed to market direction and as such seek to generate returns that have a low correlation to equity or fixed income markets. These strategies may use leverage in order to achieve their objective. Included in this category are the following strategies: Quantitative Market Neutral, Fixed Income Relative Value, Mortgage-Backed and Asset-Backed Security Relative, Convertible Relative Value, Commodity Relative Value, Risk Arbitrage, Volatility Arbitrage and Equity Statistical Arbitrage.