Portfolio Design

The process of investing in alternatives is different from the process of investing in traditional asset classes. Although the term “alternative” encompasses a wide range of investment strategies and vehicles, we work with clients to determine what, if any, alternative investments are appropriate for their portfolios, based on the client’s risk management guidelines and policies.

Our approach combines both a top-down view of our client’s objectives, sub-asset allocation and tactical market opportunities with a detailed, bottom-up analysis of the best individual managers, co-investment opportunities and other opportunities within a particular strategy. On an annual or more frequent basis, we evaluate the alternative investment strategy and provide a formal strategy update.

Our analysis of a client’s portfolio is based on our historical perspective on alternative investments, for which we have developed a proprietary strategic sub-asset allocation and commitment-pacing model. This comprehensive portfolio model is used to assist our clients in estimating the cash flow requirements of their programs, projecting the performance of their portfolios, determining annual commitment levels necessary to achieve their target allocations and analyzing the impact of changes to their portfolios.