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Desirable Goals and Characteristics
- Strategies that fit the portfolio's risk & portfolio management standards
Approved asset classes and instruments
Liquidity
Scalability
- A demonstrated ability to consistently extract alpha from markets
High Sharpe Ratios
A clear investment strategy and consistent discipline
Resources and ability to adapt to changing conditions
- Structurally Low Correlations
With underlying markets
With other candidate strategies
- An operational and risk culture compatible with
the Dynamic Risk Allocation methodology
Full transparency
Timely and accurate reporting
Adaptability to adjust position risk and volatility targets
- With support resources to deliver the above
- With integrity and professional dedication
Steps to Hiring
- Identify managers that appear to meet our criteria
Unsolicited marketing materials
Scouting
Manager databases
Internet resources
- Qualify managers
Initial criteria
Manager interview
Due Diligence
Structural & Operational suitability
- Select managers
Monitor performance
Test portfolio fit
Hiring negotiations and documentation
- Ongoing Review
Performance & Fit objectives
Risk compliance
Structural & Operational integrity
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