We offer consulting services to Family Offices on internal processes related to portfolio management, manager selection and performance reporting. We are investment professionals that are uniquely qualified to vet your needs, match appropriate solutions and work through implementation.
We build custom hedge fund portfolio allocations tailored to our client's specific needs. Hedge Funds are sourced through an extensive network and reach within the investment community. Investment team resources are used predominantly to seek boutique investment managers that are intended to perform well irrespective of the direction of the market.
I have partnered with Alpha Wealth Funds to launch a fund of funds called the “Alpha Diversified Fund.”
The Alpha Diversified Fund builds and maintains a low volatility, multi-manager hedge fund portfolio broadly diversified among boutique managers to position the portfolio to have low correlation to market indices and to deliver superior risk adjusted returns.
In the current market environment, the returns profile shown by hedge funds makes them ideal candidates for inclusion in an overall asset allocation. Bond yields in US have been minimal for several years now. In addition, the potential of default or a rising interest environment represent a risk for bondholders.
Similarly, equity markets have become more volatile and unpredictable since the start of the year. In February, equity-market volatility hit a two-year high, and ongoing international trade tensions along with pandemic fears are keeping global markets under serious pressure.
In these circumstances, increasing numbers of investors are seeking new ways of diversifying their investments by gaining exposure to asset classes that show limited correlation with market movements.
Arden focuses on hedge funds that use flexible, highly liquid instruments to form investment strategies that show little correlation with equity and fixed-income markets, while also limiting risk.
The recent diversification case for hedge funds has been difficult given their underwhelming performance relative to stock and bond markets.
Although they have provided some diversification benefits demonstrated by lower annual standard deviation for an allocation that includes an index of hedge funds.
Arden’s solution is to identify outperforming Boutique Managers combined in an optimal way to position the sub portfolio to outperform with minimal correlation to core asset classes.
Asset Allocation Without Hedge Funds: 40% Stocks, 30% Bonds, 15% PE and 15% VC
Asset Allocation With Average Hedge Funds: 20% Stocks, 30% Bonds, 15% PE,15% VC and 20% HFRX
Asset Allocation With Average Hedge Funds: 20% Stocks, 30% Bonds, 15% PE,15% VC and 20% Opt HF
Boutique hedge fund managers are often overlooked by the institutional investor community.
They are deemed too small to make an impact on the bottom line and too risky in terms of institutional mandate and consultant reputation.
This reluctance to invest in young funds provides opportunities for investors to capture excess returns from boutique managers.
Boutique hedge fund managers can individually introduce idiosyncratic risks to an overall allocation.
Optimally combining a diverse set of strategies each with their own source of alpha and risk profile can limit these risks.
Specifically, combining managers that have uncorrelated sources of alpha offset much of the volatility of the individual managers
The Alpha Diversified fund focuses on building and maintaining a low volatility, multi-manager hedge fund portfolio that seeks to have low correlation to the broader debt and equity indices. The fund’s investment objective is capital appreciation with limited variability of returns. The fund attempts to achieve this objective by allocating capital among several pooled entities, each managed by an independent investment adviser who invest in a variety of asset classes.
- Manager due diligence covers alternative asset classes, sourced through our extensive network and reach within the investment community, as well as the broader investment bank capital introduction network.
- Many of the strategies employed by outperforming fund managers simply do not work at scale. If funds grow too large, they are forced to operate outside of their strategy in order to deploy capital. Therefore, we focus on sourcing Managers who are limiting their capital raising efforts to ensure effective execution of their underlying strategies.
- Our portfolio of funds is optimally diversified broadly among these boutique managers.
CHIEF INVESTMENT OFFICER
Mark brings valuable portfolio management expertise, a record of building strong relationships, and experience employing risk management and asset allocation strategies to maximize risk-adjusted returns. His unique background includes identifying unique investment strategies, introducing technology solutions, and
CHIEF INVESTMENT OFFICER
Mark brings valuable portfolio management expertise, a record of building strong relationships, and experience employing risk management and asset allocation strategies to maximize risk-adjusted returns. His unique background includes identifying unique investment strategies, introducing technology solutions, and providing research to support decision-making.
Mark holds a BS in Managerial Economics from the University of California at Davis, an MBA from the University of California at Berkeley Haas School of Business, and is a Chartered Financial Analyst (CFA).
BUSINESS DEVELOPMENT MANAGER
Matthew Rose is a licensed attorney in the state of New York. Matt worked at several law firms in Manhattan, including Covington & Burling, before starting his own practice, The Law Offices of Matthew E. Rose, Esq., PC, in 2009. Before attending law school, Matt spent several years in the investment busines
BUSINESS DEVELOPMENT MANAGER
Matthew Rose is a licensed attorney in the state of New York. Matt worked at several law firms in Manhattan, including Covington & Burling, before starting his own practice, The Law Offices of Matthew E. Rose, Esq., PC, in 2009. Before attending law school, Matt spent several years in the investment business, eventually becoming Senior Vice President at Worthington Investments.
He received his Bachelor’s degree from Washington University in St. Louis, and a law degree from Saint Louis University School of Law.
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