We specialize in providing consulting services to Family Offices, focusing on internal processes concerning portfolio management, manager selection, and performance reporting. Our team of investment professionals possesses exceptional qualifications to thoroughly assess your requirements, identify suitable solutions, and effectively execute them.
Our firm specializes in creating personalized hedge fund portfolio allocations that cater to the unique requirements of our clients. We leverage our extensive network and connections within the investment community to source top-notch hedge funds. Our investment team primarily focuses on identifying boutique investment managers who have the potential to deliver strong performance regardless of market conditions.
I have partnered with Alpha Wealth Funds to manage a fund of funds named the "Alpha Diversified Fund." The primary objective of the Alpha Diversified Fund is to construct and manage a hedge fund portfolio consisting of multiple boutique managers, with a focus on maintaining low volatility. By diversifying across various managers, the portfolio aims to minimize correlation with market indices and achieve exceptional 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 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.
Advantages
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.
Process
- 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).
Tell us more about your goals, and we will get you started on a plan to achieve them. Schedule some time here:
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Saturday - Sunday: By appointment
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