Investment Process - Overview
Hedge funds and alternative investment strategies
Portfolios for sophisticated private and institutional investors
Hedge funds can play an important role in a broadly diversified portfolio, provided they are carefully selected, understood and continuously reviewed.
Portas Capital supports professional investors, institutional investors and sophisticated private clients in the analysis, selection and structuring of hedge fund portfolios. The focus is on understanding risk, diversification and a sound assessment of the underlying strategies.
Alternative investments based on a clear methodology
Hedge funds differ significantly in terms of strategy, risk profile, liquidity and transparency. Professional selection therefore requires more than an assessment of historical returns.
We analyse hedge funds in the context of the overall portfolio. We consider the strategy, risk factors, correlations, market environment, operational risks and the role a fund is intended to play within the overall wealth structure.
The objective is not to select individual products in isolation, but to build robust portfolios with transparent diversification.
Analysis, selection and portfolio construction
Our work in hedge funds is based on many years of experience, academic collaboration and a structured investment process. This includes:
- Performance and risk attribution analyses
- Analyses of return predictability in hedge funds and managed futures/CTAs
- Portfolio construction based on correlation and risk-factor analyses
- Due diligence reviews and assessment of operational risks
- Selection and monitoring of suitable fund managers
For this purpose, Portas Capital uses, among other tools, an internally developed database that provides structured information on strategies, risk factors and fund managers.
Our hedge fund services
Hedge fund portfolios
We advise on and manage portfolios with hedge fund strategies, including multi-strategy approaches and portfolios focused on global macro and managed futures/CTAs.
Fund selection and due diligence
We assess fund managers, strategies and risk profiles systematically. In addition to quantitative analyses, we consider qualitative factors, operational risks and practical experience gained from institutional mandates.
Portfolio and risk-factor analysis
We analyse the risk factors that shape a hedge fund portfolio and the contribution individual strategies may make to diversification.
Alternative investments within the overall portfolio
We do not consider hedge funds in isolation. What matters is the contribution they can make to the diversification, stability and long-term structure of an overall portfolio.
Rigorous analysis. Strategic use.
Portas Capital combines research, data analysis and practical investment experience when assessing hedge funds and alternative investments.
Together, we assess the role hedge funds may play in your portfolio and the requirements relating to selection, risk analysis and ongoing monitoring.
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