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Full set of investment services

Selecting AIS funds, assembling a portfolio of single manager or multi-manager funds is both an art and a science. Some investors will be better off with style focused funds, others with asset classes/sector focused while all will gain from building a well diversified portfolio. We help investors in selecting managers and building the risk-adjusted return porfolios that best suit their needs and expectations.

Investors have hired us to deliver the following services:

  • Formulate investment policy and implement strategies
  • Monitor and evaluate assets and total portfolio performance and risk
  • Develop asset allocation and rebalancing recommendations
  • Evaluate existing hedge funds portfolio
  • Evaluate targeted managers
  • Perform ongoing risk due diligence
  • Review due diligence and on-site due diligence
  • Check manager backgrounds
  • Select and evaluate managers
  • Customize AIS portfolios with multi- and/ or single manager strategies
  • Carry out risk assessment, performance/risk attribution
  • Organise investment seminars

Where do we fit into your investment decision?


Tools & Process


Investment Policy Statement

Determining whether and how to assemble a hedge fund portfolio.

  • Determine objectives, factoring growth and income needs
  • Determine appropriate risk/return pattern
  • Establish investment guidelines and develop a time frame incorporating these considerations
  • Investing via portable alpha or separate allocation

Asset Allocation

Top Down Style Allocation
Optimizing a mix of strategies based on portfolio requirements.

  • Screen risk/return patterns of specific investment funds strategies
  • Determine optimal weighting and number of managers
  • Perform Scenario analysis and stress test

Manager selection

Bottom up Manager Selection
Identify suitable managers to create a diversified portfolio.

  • Conduct manager search to indentify suitable candidates and their source of alpha
  • Perform due diligence, interview and background check
  • Perform manager evaluation, track record and and biorhythm analysis
  • Perform peer groups and quartile analysis
  • Allocate to each manager according to their biorhythm in order to yield an optimal global portfolio return

Portfolio Monitoring

Performance and risk attribution analysis
Post implementation monitoring of portfolio.

  • Control performance on a regular basis and measure performance vs broad market indexes
  • Examine performance attribution on a regular basis
  • Examine the impact of organizational changes that may affect the management of the selected funds
  • Highlight the factors causing past results and driving future performance
  • Rebalancing the portfolio as appropriate

Case Study 1: Customized FoFs portfolio for a low risk profiled middle size Foresight Mutuality Investor


Create a diversified low risk Hedge Funds portfolio

  • investment size: $100 mio, 15% of total assets
  • Requirements: achieve a performance above benchmark. Target absolute returns 8-12%
  • moderate volatility: no higher than 0,5% monthly or no higher than 1,5 that of the Lehman Aggr. Bond Index
  • Low correlation: less than half point to the S&P500 Index and Lehman Aggr. Bonds Index
  • Maximum Drawdown : 9%, Benchmark: HFRI FoF Diversified Index


Manager evaluation & selection

  • Step 1: screening to create a short list according to the investor`s minimum requirements: monthly liquidity, no lock up, 3 years' track record, strong risk control,
  • Step 2: screening to create a short list based on risk parameters and correlation
  • Step 3: conduct a due diligence of all the funds on the short list
  • Step 3: final manager evaluation for selection


Build up an optimal multi-strategy portfolio

  • Invested across 23 single and multi-strategy managers to enhance diversification effect
  • Implemented investment process via portable alpha
  • Improve risk /return characteristic of the global portfolio
  • Statistics for 2002:
Leverage 4.9% ;
3 years volatility 3.6.% ;
Returns 10.2%;
Sharpe Ratio: 1.51;
Correlation S&P500: 0.41
Lehman Aggr.Bonds 0.43

Case Study 2: Asset Allocation with AIS for a medium risk profiled Family Office

Investor’s Profile

Family Office department of a middle sized institution
Conservative and income–oriented investor, capital preservation is important.
All dividends and capital gains are intended to be retained in the portfolio for the first 5--8 years. In the event of retirement after 8 years, the income generated may be required.

Strategic Asset Allocation with AIS for a low risk profiled Family Office


Create a diversified income with some growth portfolio

  • Portfolio Size: $ 350 mio, Total AUM: $ 3 billion
  • Requirements: Target 11% compound annual return (ROR)
  • Very low volatility: 0% risk tolerance over any 12–month period
  • Low correlation: less than half point to S&P 500, Lehman Gvt Bonds
  • Maximum Drawdown: 2% over 24–month period
  • Benchmark: HFRI diversified


Asset Classes and Manager selection

Step 1:

  • Determine the parameters around which the portfolio will be optimized
  • Define the available asset classes to be included in the portfolio, on the basis of historical data and time series
  • Determine the methodological frame for risk management techniques of rebalancing and reallocation
  • Define the maximum risk constraint by choosing a higher confindence level ( 90%) in order to match the conservative portfolio structure

Step 2:

  • Eliminate from the asset allocation, asset classes that are inherent
  • High-categories: aggressive growth and emerging markets asset classes
  • Introduce alternative asset classes that give diversification during market downturn:
  • convertible arbitrage, market neutral, CTA‘s
  • Introduce asset classes that give good returns and capital preservation during bond market downturn with limited risk: investment grade corporate bonds
  • Selection of international funds, government bonds and mortgage bonds that minimize duration and prepayment risk


Propose an optimal portfolio mix at different statistical confidence levels

Portfolio Basic Mix

Asset Class


Money Market (t-bills)
Real Estate Funds
Fixed Income Funds
- Mortgage (10%)
- Intenational Government (5%)
Corporate Bond Funds
Balanced Funds
Bond/Equity (40/60)
Growth and Income Equities
Hedge Funds




STATISTIC: Variation Mix at 90% confidence level

Option 1Option 2Option 3Option 4

Compound ROR since inception12,53%12,85%12,78%13,05%

5 - Year Mean ROR13,70%13,75%13,66%13,88%

1 - Year Mean ROR14,24%14,34%14,10%14,21%

1- Year Standard Deviation10,35%9,95%7,89%7,79%

1- Year Minimum ROR-3,11%-2,04%0,56%1,68%