We are still riding the wave of the longest bull bond market in history which is nearing 40 years in duration. We also continue to see historically low interest rates. Neither condition can last forever. Given this, the traditional fixed-income structure of many client portfolios is likely to disappoint significantly when the environment changes. Our alternative income funds may provide a greater degree of portfolio diversification and additional sources of income than traditional fixed-income portfolios.
The 30 year performance of the HFRI Composite Index has long been the envy of the investment community. Who wouldn't like the same types of returns as the S&P 500 with half the volatility? The problem is, you can't invest directly in the HFRI Composite Index. Even tracking the strategies in the hedge fund universe, let alone replicating those strategies and making them available in liquid portfolios has proved daunting. Our Dynamic Beta funds attempt to provide a solution to the gap we saw in the space.
Proprietary systematic process seeks to closely track the HFRI Fund Weighted Composite Index - a global universe of more than 2,000 hedge funds. This broadly diversified “one-stop” index is comprised of the following sub-indexes : Equity Hedge; Event Driven; Macro and Relative Value. Strategy seeks to provide greater portfolio diversification and enhanced risk adjusted returns.
Strategy seeks to deliver a diversifying return stream by closely tracking strategies that opportunistically take long and short positions across asset classes including commodities, currencies, equities and fixed income. Global macro directional investing flexibility can provide return streams that “diverge” and diversify portfolios from strategies focused on value and price “convergence”. Goal is to closely track the HFRI Macro Index.