We believe that the mainstream alternative investment market is largely saturated with too much capital chasing a finite amount of inefficiency. In our view, the environment for many hedge fund strategies is generally unfavorable with only a few managers truly capitalizing upon a sustainable edge and producing a positive expectancy return stream. We feel that broadly speaking, many mainstream hedge fund strategies have simply become a watered-down proxy for the equity market.

We believe that our approach is unique and superior. We seek to invest in predominately niche-oriented, non-mainstream strategies often operating in capacity constrained businesses where we believe the demand/supply equation for inefficiencies is more fertile for the investor as these are mainly strategies that have not been saturated with institutional capital.

We don’t rely on global macro predictions to generate returns. Rather, we seek to find a series of highly diversified positive expectancy investments, with a heavy overlay of risk management, due diligence, and diversification. Our objective is to provide investors with an uncorrelated source of alpha by investing in non-correlated hedge fund strategies.

We seek managers that demonstrate positive expectancy (mathematical advantage) and are both internally uncorrelated to other managers in our portfolio and externally uncorrelated to broader markets. We believe that the managers in which we invest either have (i) a competitive advantage in the markets in which they trade or (ii) the ability to capitalize on a structural inefficiency in the market. In our view, significant opportunities currently exist in ‘under the radar’ less widely followed strategies. Historically, we’ve invested in strategies such as electricity arbitrage, capitalizing upon inefficiencies in shipping derivatives, algorithmic pattern recognition, big data/machine learning, quantitative global macro, and various other non-correlated ‘niche’ strategies.