Investment Process

Investment Philosophy and Process

SkyBridge believes that a hedge fund of funds manager must employ a repeatable investment process to achieve risk-adjusted return targets and to preserve capital. SkyBridge takes an active and multi-dimensional approach to portfolio construction, seeking non-correlated risk exposures in an effort to minimize volatility and maximize return. Investments are supported by risk management, operational due diligence and an ongoing monitoring process.

The SkyBridge investment process includes:

Manager Selection: SkyBridge focuses on forward-looking, fundamental research on the capital markets, the evolution of hedge fund opportunity sets, and potential for a manager to execute a given strategy and generate alpha.

Portfolio Management: The portfolio management approach is dynamic and focused on the liquidity of the underlying funds. The investment team establishes a top-down view of macroeconomic and geopolitical conditions in order to help identify market opportunities, set strategy performance forecasts, and determine strategic and tactical portfolio weightings. SkyBridge seeks to actively shift investment exposures to opportunity sets where it believes the greatest risk/reward potential and the most attractive correlation characteristics exist.

Risk Management: Risk management is attentive to anticipated performance of fund investments given the hedge fund strategy employed. Active portfolio management is used, with the goal of creating diversified hedged portfolios. Every investment is supported by risk management, operational due diligence and an ongoing monitoring process.