A 7-step guide to single family office investment
Hedge fund allocations can balance risk and reward while maximizing opportunities for growth, but a detailed understanding of the underlying managers is required.
We believe that to effectively allocate to hedge funds, a single family office must first determine the role of the hedge fund sleeve in their portfolio – whether it is for risk reduction, return enhancement, portable alpha, or portfolio hedging.
Diversification is key, along with past performance and the likelihood of persistent returns. The sources of return, strategy and manager must be complementary to the overall portfolio, accentuating different risk exposures and profiles to provide a robust hedge for the wider portfolio.
