Services for Investors

Alternative Investments are now a widely recognised and accepted investment class. Nevertheless, they remain a challenging and very diverse world, and particular skills are required to understand the styles being deployed, and the risks incurred by a particular fund. This requires analyzing the object of the investor to make sure the desired investment profile is defined prior to the portfolio construction exercise. There are many ways to achieve a risk/return profile and the variety of styles and managers allows flexibility in this respect, as long as the objectives are well understood. Alpha Finance Advisors propose a multi-step approach:

The Risk Check Up™

In the Risk Check Up™, Alpha Finance Advisors:

  • Conduct on the investor's behalf reviews of the nature of the trading that is occurring in the fund.
  • Assess the risk environment wrapped around those trades.
  • The Risk Check Up™ is undertaken for the sole benefit of the investor. The scope and detail of the reporting is agreed with the manager to respect the need for confidentiality. This can be conducted as a one-off, on special request, or as a regular exercise.

Portfolio Design

However, investing in hedge funds is not just about selecting managers. It is about constructing a portfolio that matches a desired profile and investment objective. In this stage, Alpha Finance Advisors offers to assist the investor in:

  • Defining the overall objectives.
  • Looking into the integration of the alternative investment portfolio into a wider general portfolio.
  • Evaluating the merits of the alternative investment portfolio as a standalone investment.
  • Assessing the most appropriate styles and type of risk exposure to look for.
  • Exploring the ways to allocate risk capital to each of them in an optimized way.

Portfolio Construction

The final step:

  • Match the risk/return profile of the optimal benchmark portfolio as described above.
  • Reproduce as much as possible the ideal combination of styles and risk profiles that encapsulate the investment objectives.
  • Identify potential investment candidates.
  • Assess and evaluate the candidates.
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For further information please contact investor.info@alphafinanceadvisors.net