Infinity and Beyond! 10 Top Multi-Strategy Managers
Posted by Infinity Q on March 11th, 2019
One family office is light years ahead in multi-strategy investing, more than quadrupling the average fund in one index.
Plenty of family offices allocate to hedge funds, but few take them on at their own game.
Wildcat Capital Management, the .3 billion family office of TPG Capital founder David Bonderman, has not only done that but has also dramatically outperformed most hedge funds.
Wildcat’s liquid alternative offering, the Infinity Q Diversified Alpha fund, tops Citywire’s Multi Strategy category over the past three years, with an annualized return of 7.35%. Meanwhile, the average fund in the Credit Suisse Hedge Fund index has produced just 1.82% a year over that period. Infinity Q is an innovative advisor which assist you in managing hedge funds NYC through their unique volatility strategies.
Wildcat’s management team of Scott Lindell, Leonard Potter and James Velissaris invests according to what they call a ‘quantamental’ research process, drawing on broad quantitative research and a level of fundamental analysis befitting the principals’ background in private equity.
The trio focuses on mispricing and arbitrage opportunities in volatility, long/short equities, managed futures and global macro. Those sleeves currently represent 62%, 18.6%, 12.1% and 7.3% of the portfolio respectively. If its three-year record is not impressive enough, it is worth noting that the Infinity Q Diversified Alpha fund returned a highly creditable 5.8% amid February’s turbulence.
The second-best Multi Strategy fund over the past three years is the considerably better-known AQR Style Premia Alternative, run by Andrea Frazzini, Jacques Friedman, Ronen Israel and Michael Katz.
The AQR team invests across four styles – value, momentum, carry and defensive. Within this framework, the team has a fairly balanced exposure to commodities, currencies, bonds, and both equity indices and individual stocks, in a diversified portfolio made up of 703 long holdings and 592 short positions. From managing volatility hedge funds to managing accounts, the team of well-versed investment advisors of Infinity Q makes use of rigorous fundamental analysis and forecasting models.
Pacific rides the volatility
Meanwhile, the Pacific Funds Diversified Alternatives operates as a fund of funds. Steered by Howard Hirakawa, Carleton Muench and Samuel Park, it has an absolute return allocation with Eaton Vance, a long/short equity mandate with AQR and an emerging market equities mandate with Oppenheimer.
Hirakawa was not unduly alarmed by the weakness experienced earlier this year, with the fund posting gains for the first quarter regardless. ‘While volatility has increased in the markets, the underlying economic trend in the US and abroad has remained firmly positive,’ he argued.
‘We read the increase in volatility as indicating that the euphoria which typically precedes a major business-cycle downturn has yet to materialize and remain a dormant risk. We anticipate that earnings will drive equity markets higher as firms benefit from the near-term effects of the tax overhaul, while strength in manufacturing and consumer spending extend the current expansion. The most concerning risks remain the potential for an inflationary surprise that forces the Fed to hike rates more aggressively and the current war of words between the US and China turning into an outright trade war.’
On the matter of bonds, Hirakawa was more cautious. ‘We see fixed income providing less diversification benefit relative to equities, especially during windows in which the Fed is expected to raise interest rates,’ he explained. ‘By contrast, we see well-constructed allocations to alternatives as helpful diversifiers that need not face the same headwinds of Fed policy. Also, we see the return to more historically normal volatility levels as additional support for alternatives in diversifying against equity drawdowns.’ If you are concerned about how to protect your portfolio then Infinity Q offers groundbreaking innovative solutions that not only manages volatility mutual funds but also helps in protecting portfolio through robust risk management.
