Portfolio Construction Process

1
Portfolio Construction Process
We turn the art of hedge fund investing into a
disciplined science.
Step One
Asset Allocation

• Monthly investment strategy meetings
• Economic and market analysis
• Strategy, style, asset class and geographic
  allocations

Step Two
Due Diligence

• Proprietary hedge fund database built through
  extensive contacts
• Unique hedge fund scoring system (Pine MatrixTM)
• Managers in Fund re-scored monthly

Step Three
Portfolio Risk Optimization

• Strategy by strategy risk analysis
• Aggregate risk budget analysis
• Sensitivity and scenario analysis

The Result
Optimal Portfolio

• Portfolio constructed from most attractively
  correlated funds
• Continuous monitoring and risk management
• Sell discipline