Funds of hedge funds

Hedge funds are a special type of investment fund, usually characterized by a speculative investment strategy. This gives hedge funds the opportunity to offer a high rate of return, associated with greater risk. Funds of hedge funds aim to counter this risk with greater diversification by investing in multiple hedge funds.

The Global Hedge Fund of Funds Strategy from ARIAD Asset Management GmbH

ARIAD's Hedge Fund of Funds Strategy offers investors (cost-) efficient access to the world's best hedge funds. A fund of funds, as an absolute return portfolio structure, is based on a structured investment process that not only assesses the quality of a potential hedge fund manager's strategy, but at the same time also takes its preferred or most profitable market phase into account. Using this analysis as a basis, capital invested with ARIAD's Global Hedge Fund of Funds Strategy is optimally combined with the hedge fund management style for a particular market phase. The result is a highly attractive mix of specially selected quality managers and fact-based timing.

The benefits at a glance

• Constant, stable income.
• Security thanks to the transparency of the selected hedge funds: this allows for an independent valuation process which, in turn, is the prerequisite for adequate reporting. Furthermore, this transparency enables risk to be monitored and managed on a daily basis.
• Monthly liquidity without lock-ups or redemption fees.
• The varied hedge fund strategies of hand-picked fund managers provides for enhanced diversification: investors reap the benefits of analysis, professional due diligence and the resulting selection of managers.
• Efficient tool to manage cash equitisation and global asset allocation.
• Low degree of correlation with traditional equity and bond markets.