Macro Economic Consulting
We view our macro consulting as having perfected “quantitatively advised” fundamental analysis. Mathematical models and data analysis is performed expressly to advise our final interpretation of fundamental data. This is then viewed through the prism of three decades of market experience: there is no magical “black box” in the generation of our fundamental outlook. This outlook has advised investors on the fundamental positioning ranging from hedge funds and family offices to model-driven equity value funds.
OUR SERVICES
Asset Allocation
Asset allocation is one key to outperformance. Our core philosophy is to meld expected return outlook with client risk tolerance, while remaining strictly within the permitted investment universe. Successful asset allocation integrates every level of risk and return, encompassing investment strategy, traditional or alternative investments vehicles, and asset level risk. Critically, it must rigorously consider how actively the client wants to manage the funds, and to ensure that the resultant allocation is consistent with liabilities and objectives. At the highest level, all factors are relevant to finding the base allocation, expanding from asset-liability consideration to encompass social and reputation considerations, as applicable to each individual client.
Strategy and Fund Advisory:
Strategy Allocation: Strategy allocation is an important determinant of a portfolio’s resultant risk and return profile. Each component, traditional or alternative, must be appropriate for the risk-adjusted objectives, both individually and in combination. Those objectives can go well beyond a target return, reflecting the risk level of investors and plan participants. Within alternatives, one of the great fallacies is that a given hedge fund exists that works in all environments. We actively pioneered the active management of alternative fund strategy allocation, and remain committed to that belief.
Fund Advisory: In our studies, 80% of outperformance comes from manager performance. As we see it, no amount of superior sector allocation can overcome poor manager selection. As a result, we combine practical asset management experience with deep analysis to review individual hedge funds, going well beyond track record to identify the source and sustainability of manager alpha.
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Expert Advisory:
We work closely with law firms and expert witness groups to offer independent insights and analytics to a far-reaching hedge fund and portfolio management issues. We have assisted in a broad range of cases, including offering expert-opinion input on the outlook for returns on forward valuation of a hedge fund interest, various assessments of potential confusion on names for investors, to the potential impact of regulatory action on investors. Expert opinion is rendered efficiently, based on in-depth analytics and always with an assiduous focus on ease of understanding by the reader.