Investment Approach
Several key factors influence Contego’s investment approach: the
risk and return goals of the client, correlation to the client’s other
assets, leverage and macro-economic cycles.
The risk and return parameters of the client help to shape portfolio
construction decisions such as diversification, volatility and asset
focus. In addition, Contego structures a client’s portfolio to provide
low correlation to broad financial markets.
Our investment approach differs for levered and non-levered funds due
to their differing risk profiles. Asset allocation processes for
levered funds pay more fine-tuned attention to volatility and
predictability of returns, resulting in some asset classes or
management styles being ruled out. Levered funds will also have a
greater number of investments in order to diversify the risk attendant
to return magnification.
Top down views of market opportunities also influence portfolio
construction and generally are reviewed at least quarterly.
A Tailored Approach To Hedge Fund Investing
For individuals and institutions who wish to make hedge funds a
part of their investment strategy but are concerned about their
ability to choose among the growing number of funds and strategies,
Contego offers a unique resource. We have the expertise and experience
needed to assist clients in including this asset class effectively in
an investment portfolio.
We can create a customized fund of funds for each investor that is
designed to meet that investor’s particular goals -- non-correlation
with public equities, reduced over-all risk or volatility or other
goals -- and can choose the managers and funds most likely to meet
those goals. Unlike an investment in a typical fund of hedge funds,
clients avoid dilution of their investments in top tier managers by
having their own personalized portfolios. Once a client’s hedge fund
portfolio has been determined, we provide consistent, effective
monitoring of the resulting portfolio to make sure that the strategy
remains sound and the managers perform as expected.
|
