The strategy utilizes a fundamental approach based on value-based research to construct an alternative portfolio that seeks to provide strong risk-adjusted returns over the long-term with low market beta, low volatility and downside mitigation. It employs multiple long and short strategies across a broad array of assets and offers exposure to hedge-fund like strategies while providing the cost, liquidity and transparency benefits of a mutual fund.
Careful monitoring of portfolio and position exposures along with monitoring for buildup of imbalances and/or tail risks. Seek inexpensive, effective hedges and best risk/reward across portfolio positions.
Conduct portfolio level and security level analysis, including stress test and scenario analysis, to assess potential risks and imbalances, as well as return potential.