Family offices, asset allocators, or the assets of high net worth QEPs can be perceived as esoteric and quite complex. Even if you understand the value of adding hedge funds, managed futures or other alternative investments to your portfolio, how do you find quality managers? How can you access niche managers that may fly ‘under the radar’ of many of the large investment houses? How can you better understand the trading programs or performance of these managers? How can you best monitor the investments that you make?

 

One of the industry developments we are seeing more of has been the meteoric rise in demand for managed accounts. Managed accounts allows investors total transparency and liquidity. In the current environment this type of structure is quite appealing.

The first step in providing our clients with access to best of breed alternative investments is finding and selecting managers and investment products from the vast and growing universe of alternative investments available today. In identifying talent, we specialize on selecting niche Commodities, Derivatives.

Once we have identified managers and products that pique our interest, these products are taken to the next stage of product review. We evaluate the products and opportunities very closely relative to the needs of our client base and the existing products. We will also begin the process of negotiating fee sharing arrangements with the prospective manager. Finally, we help to ensure that suitable clients have a reasonable window of time within which to invest.

Beverly Hills Capital will continue with a more extensive due diligence process which may include background checks on principals, a review of regulatory filings, on-site interviews and evaluations, a review of offering material, a review of independent performance verifications and many other items. This detailed due diligence process cannot, of course, remove all of the risks associated with an investment in hedge funds or managed futures. Upon completion of this review, the product is either rejected or added to the our managers Cap Intro platform.

Tracking and monitoring is essential to maintaining a high-quality platform of hedge fund and managed futures products to offer our clients. We perform periodic quantitative analysis of performance against predefined parameters, looking for random variances. We also look for changes in business or investment strategy, style and execution drift, scalability when possible, and any other piece of information that may cause us to re-evaluate the manager or the particular investment product. Of course, while this monitoring is extremely important, it cannot totally eliminate the risks associated with any investment in hedge funds or managed futures. Should an issue arise during our ongoing monitoring, it is raised with the manager, which can result in recommendations regarding redemptions, future investments or termination of the product from our Cap Intro platform.

For our investors, the process begins with an evaluation of your current needs, investment objectives and current financial situation. For managers who we are reviewing for potential addition to our platform, the process begins with a discussion about your investment products and your organization.

To find out more interactive provision of information contact us at 1-800-749-3455 or via e-mail: bserra@bevhillscap.com. Outside U.S., dial 1-310-556-7718