We invest with people who specialize in uncovering great value in inefficient
market sectors, or who manage "traditional" hedge funds which
have the flexibility to go short, a flexibility that traditional long
portfolio management and most mutual funds lack.
Our investment strategies include:
Top long/short hedge funds run by individuals with superior institutional
backgrounds.
Experienced traders with track records in excess of 25 years.
Distressed securities managers who ran high yield proprietary
trading desks at major Wall Street institutions.
Highly successful merger arbitrage managers with track records in excess
of 15 years.
Principal strategies utilized by our fund managers are:
Managers who employ long/short hedging strategies endeavor to structure portfolios that have a modest correlation to the equity markets. These managers invest a portion of their assets in long positions (in stocks expected to increase in value) with the balance in short positions (stocks expected to decline in value) Based on market conditions, managers constantly evaluate their net long or net short exposure.
Some of these managers focus on specific industries or sectors (technology, financial, biotechnology, etc.) Others specialize in stock selection, both long and short, from either a growth or value perspective.
Merger arbitrage managers try to capture the difference between current market prices and the expected value of securities upon successful completion of a takeover or merger transaction. This opportunity arises with the public announcement of a definitive merger or acquisition agreement between two companies. The target company's securities typically trade at a discount to the total consideration offered for the target company’s stock prior to consummation of the anticipated corporate event. This discount reflects the market’s perception of the risk involved due to the uncertainties surrounding the completion of the transaction. Profit is derived from the differential between the purchase price of the securities prior to the merger and the value ultimately received upon its consummation.