K1 fund and related funds… the importance of due diligence

Posted 11.02.2013

we have found the article linked below on yet another ponzi scheme, this time from Germany. The point being: due diligence matters! as always we will be happy to help of course.

Weavering… Liquidator sues the Administrator

Posted 10.01.2013

As reported today in the Irish Independent, the liquidator has decided to go after the administrator. This is just reiterating the importance of  proper monitoring from all parties involved with asset managers. There should be processes and systems in place to monitor limits. guidelines and major types of risks.. like counterparty in this case, which would have highlighted the situation.


Apollo Liquidity August Update

Posted 7.11.2012

our model portfolio continues to behave with no changes over the period. Feel free to contact us for more details Apollo Liquidity factsheet Aug 2012

Weavering judgment: an alarm bell for NEDs

Posted 29.08.2012

Last year judgement in the Cayman courts should still be resounding loud and clear in the mind of NEDs of hedge funds of course, but also of any Asset Management company. the AIFMD will likely hammer that point in further. These conclusions are at the heart of our creed and insist on risk governance and infrastructure. We have summarized some important points in the attached document and we hold a full copy available to those of you who might want to read it “in the text”.

Weavering judgment_ a warning for NEDs

Changes to Leverage Calculation for Collective Investment Schemes

Posted 20.08.2012

the CSSF August newsletter clarifies what is expected from Collective Investment Schemes registered in Luxembourg for the calculation of leverage.

it is now compulsory for all such funds to use the notional based approach for all derivatives. It is of immediate effect for new funds and has to be  in place – and prospectus amended - by year end for all existing funds.

Apollo Liquidity May update

Posted 18.07.2012

For May we have produced the usual monthly factsheet presenting the profile of the simulated portfolio as usual, but we are adding the analysis of Apollo liquidity “live”, the paper version of the portfolio we monitor, including the historical impact of the adjustments we make to the portfolio on a regular basis. Apollo_Live Apollo Factsheet May

we are getting closer to launching our fund analysis library and the format will be the same as the Apollo live. Suggestions are very welcome as to how you would like to see it improved.

Tips for Hedge Funds manager from the Geneva Family Office conference

Posted 9.06.2012

I attended this past week the Geneva Family Office Conference where I spoke on “why should hedge funds be part of a Family Office asset allocation”.

Interestingly some Family Offices volunteered a few tips on what they were expecting/looking for in hedge funds. The two factors that they put out first were TRUST and TRANSPARENCY, they biggest fear being STYLE DRIFT. This obviously can have a few very different meanings so they elaborated further in a few practical points:

- Produce a written DDQ

- Communicate via clear reports

- Produce and distribute a Risk Dashboard

- Make your decision/investment process clear and explain how it lead to the current state of the portoflio

- Demonstrate alignment of interest

- Be/participate in databases

- Be open to/facilitate peer analysis

These are not going to be everybody’s cup of tea but feed back is a gift, especially when it comes from potential investors.

Alpha Finance Advisors will be very happy to help you put all this in place. Feel free to contact us.

Analysis of the relationship between Sovereign CDS and Sovereign Bonds spreads

Posted 6.06.2012

As CDS and more specifically Sovereign CDS have come under political scrutiny, we thought it would be useful to have a more impartial view on the relationship between Sovereign CDS and the Sovereign spreads. Academic research centre EDHEC-risk devoted efforts to analyse the possible impact of one on to the other and came up with results that are worth looking at.

We went to a presentation of those results by Dominic O’Kane, who conducted this analysis and thought it would be interesting and hopefully useful to share them with you.


Apollo liquidity Apr 2012

Posted 24.05.2012

dear Readers,

please find the April updates under the new format we announced in March. feel free to contact us if you would like to discuss our investment methodology.

the main aspects to remember are the investment constraints:

- low risk (as measured by drawdown and downside volatility)

- low correlation to traditional asset classes

- weekly liquidity

- low operational/fraud risk; style drift monitoring (hence the focus on managed accounts platforms)


Apollo Live

Apollo liquidity Mar 2012

Posted 24.05.2012

This month we have made some changes in the portfolio motivated by:

- the introduction of new managers on the  managed accounts platforms that constitute our universe

- the withdrawal of some managers.

this has led us to change the composition of the Relative Value and Global Macro investment pillars.

To facilitate your monitoring  of this portfolio we have decided to publish two different documents:

- the “Factsheet” which represents the backfilled risk and return profile of the current portfolio as it is currently invested (the usual document)

- the “Apollo Live” document which analyses the risk and return profile of  Apollo liquidity as a live portfolio, giving the historical risk and return profile of the portfolio through time.


Apollo Live