Investment Process

In our investment process, we take a predominantly bottom-up approach, reflecting our belief that hedge fund managers are well-equipped to capitalize on varying market conditions. In other words, we do not actively manage our portfolios according to pre-formulated return expectations for the different hedge fund investment strategies. Rather, we strive to select managers that have proven the ability to successfully exploit investment opportunities across various market environments.

We aim to compose portfolios of hedge funds with fundamentally different risk-return profiles to maximize the benefit of diversification. In addition, we may identify longer-term investment themes based on opportunities and the dynamics of the hedge fund industry which go beyond the typical horizon of traditional tactical asset allocation. Our investment horizon for the opportunities tends to be multiple years. This approach endeavors to provide our clients with capital appreciation and downside protection at all times.

Our investment process is supported by the Theta Technology Platform, which comprises a state-of-the-art hedge fund monitoring database, various external and proprietary tools for quantitative fund and portfolio analysis and a web-based portfolio management and reporting system dedicated to hedge fund investing. Reflective of our continuous drive to innovate, Theta was the pioneering user for all these systems in continental Europe.