Direct HF Program

As returns have fallen over recent years, investors have focused on reducing fees.  Increasingly, investors with sufficient asset size have migrated away from fund-of-hedge-fund portfolios towards direct hedge fund programs.

A direct hedge fund program enables investors to customize the program to meet their liquidity and diversification needs while reigning in fees that have traditionally created significant headwinds to fund-of-hedge-fund investors.

There are six stages to the investment process for Pavilion Alternatives Group’s customized hedge fund portfolios:

 

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  • The process begins with Program Design. Each program is tailored to the client’s needs, objectives and current situation
  • In Portfolio Construction, Pavilion recommends allocations to hedge fund strategies that have better prospects over the medium term
  • In Manager Sourcing, Pavilion seeks to identify best-in-class hedge fund managers consistent with macro perspectives
  • Once Due Diligence is successfully completed, managers are presented to Pavilion’s Manager Research Committee for approval
  • During Program Implementation, we provide clients with as much help as they need, including fully implemented solutions
  • Ongoing Monitoring includes basic performance reporting, detailed risk analysis using our third-party risk provider, a continuous review of investment and operational items, on-going portfolio advice, recommendations for portfolio rebalancing, manager retention and termination.