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.