With years of experience advising investors on getting the best out of their alternative investments as well as long-only investments, Investment Quotient can work with all types of professional investor, such as public pension funds, private pension funds, insurance companies, funds of funds, sovereign wealth funds, endowments & foundations, family offices and financial institutions.
We advise investors on their general options, and on very specific issues, as well as assisting with manager searches and due diligence.
Good managers are so hard to find, and most under-perform the market after fees.
Manager selection is as much an art as it is a science. They say that past performance is no guide to the future; but it is often the only tangible measure we have of manager success. The key to selecting managers is to determine the likelihood that they will outperform in the future, and the risk that something will go wrong.
Can they sustain the current out-performance? Was it just luck or was it really skill? If a manager can articulate these answers well, then that gives us confidence, but all too often, manager performance is just luck or leverage masquerading as skill.
Sometimes a manager achieves notoriety, and that can be a blessing or a curse. If other investors choose to follow the star manager, then his investment decisions can be self-fulfilling, as he is the first to invest and momentum builds behind him, driving the price up. But with success comes scale, and the positions and strategies become more and more crowded, until getting out of them at short notice can be problematic.
In any market where the rewards are large, then there are incentives to take unfair advantage. This could be in terms of hidden fees terms or restrictions. That is why due diligence is so necessary in a non-standardised market like hedge funds.We can advise you on what is reasonable, and what needs fixing before an investment can be made.
You really do have to leave no stone unturned to ensure that the money you are investing – especially if it is on behalf of someone else – is safe.