An effective hedge fund investment process must focus on forward-looking, fundamental research on capital markets; the evolution of hedge fund opportunity sets; and the ability of a manager to execute a given strategy and generate alpha. Beyond these measures, a successful investment process is predicated on the qualitative ability to differentiate great managers from good managers.

SkyBridge has a well-established network of managers, investors, prime brokers and service providers in the alternative investment industry. We have developed this proprietary database through our relationships with existing managers and Limited Partners, production of the SkyBridge Alternatives (SALT) Conference and participation at other key industry events, access to third-party databases, and penetrating quantitative analysis. We have refined a comprehensive process for manager sourcing, evaluation and selection. Our stringent approach to manager selection leverages our investment team’s expertise in manager research, portfolio construction and risk management to achieve our clients’ objectives.

Portfolio management must be dynamic, nimble and liquid in order to capitalize on the richest opportunity sets currently available for hedge funds. SkyBridge’s team of investment professionals takes an active and multi-dimensional approach to portfolio construction, with an eye toward harmonizing non-correlated risk exposures to minimize volatility and maximize return.

To support our clients in achieving attractive, long-term risk-adjusted performance, we focus our efforts equally on strategy and manager-level allocation. We look at both in real time, and evaluate risk exposures and correlation properties in the context of a changing market environment. In most cases, reallocation is necessary to:

• Maximize return
• Minimize risk
• Maximize liquidity
• Adjust correlation/beta as the market cycle evolves

The SkyBridge investment team works hand-in-hand with the firm’s clients to tap into an expansive network of hedge funds and to construct portfolios that are actively managed over the long term.

Risk management is the cornerstone of a successful hedge fund investment strategy. At SkyBridge, every investment is supported by a thoughtful and thorough risk management, operational due diligence and ongoing monitoring process.

Our risk management process includes:

• Fundamental and qualitative due diligence
• Diversification of risk within portfolios
• Focus on tail risk/hard-to-measure risk
• Assessment of business and operational risk

Based on our analysis, we implement a process that includes:

• Detailed risk and performance attribution reports
• Monthly performance calls with managers
• Bi-monthly check-ins with investors to review portfolios
• Annual due diligence reviews

Our “High Client Touch” approach leverages the following capabilities:

• Hands-on team of professionals including six senior members with an average of fifteen years of investment experience
• Team members responsible for the U.S., Europe, Asia, Australia, South America and the Middle East providing customized support to a global client base
• An innovative product development team that structures unique and customized hedge fund product offerings
• Senior management team that engages directly with clients
• Regular client communications (monthly, quarterly, and annual)

Further information on our specific business lines, products and services may be viewed here.