Multi-Investor Funds

Ideal portfolio sizing is critical throughout our funds, with portfolios typically consisting of 10 to 20 underlying managers. We believe that adding too many managers to a portfolio lessens the ability to know what you own and introduces unknown risks. In addition, over-diversifying can diminish returns without a reduction in risk.

Likewise, we are also disciplined about the asset size of our funds and close them if adding additional capital would require exceeding our desired manager count, introducing new strategies and risks outside of our core competency, or using second-tier managers.

For our long/short equity, global macro, event-driven and multi-strategy investments, we:

• Employ an investment process that focuses on three key risks — leverage, liquidity and concentration.
• Seek managers and strategies that generate attractive risk versus return profiles through alpha generation, trade construction and active risk management.
• Identify managers early in their lifecycle so that we can secure capacity for future allocations and negotiate favorable terms.

Our credit investments also follow the same general guidelines; however, they tend to be slightly less liquid and employ a top-down view in order to capitalize on asymmetric investment opportunities.