The EnnisKnupp Opportunistic Strategies Team evaluates a wide variety of hedge fund strategies, including fund of funds, long-short and market neutral equity, macro, multi-strategy, distressed, and commodity and options strategies.
Historically, our process has screened out highly leveraged strategies. Many clients prefer funds with broad mandates rather than allocations to sector or regional specific funds.
We select each manager in a client portfolio using a thorough due diligence process, which includes multiple manager interviews to determine their skill in portfolio management and risk management processes, as well as the strength of their operational controls.
We customize allocations across strategies and managers for each client, taking into account the risk and return goals of the fund, as well as the risk characteristics of the individual managers. There is also an integration of risk and return goals across the traditional and alternative investment allocations.
Portfolio construction follows a blueprint that includes these steps:
- Develop an understanding of each client’s goals for their hedge fund program
- Clarify the role of hedge funds within the entire investment program
- Identify the top managers in each style
- Calculate the allocations to each manager and strategy
Our portfolio construction focuses on historical risks and correlations for and between managers, overlaid with a qualitative view about the potential risks of each manager’s specific trading strategy.