Balance of Return Focus and Risk Management
Flexible, multi-strategy architecture
» Multi-disciplinary, holistic approach to situations to take advantage of opportunities
» Allocation of capital to a number of different strategies to improve risk / return profile
Philosophy of diversification and liquidity
» Mitigation of unsystematic risk through diversification within strategies
» Substantially all investments may be liquidated within a few business days
Intrinsic research edge, contrarian approach, and common sense
» Focus on under-researched situations where significant risk premia can be captured
» Favor "research orphanage" and liquid small- to mid-cap situations vs. crowded trades
Team-oriented, cross-fertilization approach
» Complementary professional and geographical backgrounds of general partners
» Understanding of fundamentals and corporate actions inside-out and outside-in
Integrated and critical risk management
» Disciplined risk culture and doctrine of "no surprises" permeate the organization
» Emphasis on active, prudent, and balanced risk management
Total alignment of interest along with management conviction
» Substantially all of the partners’ net worth is invested in the fund
» Compensation of investment team tied to performance
