Case Studies » Coastal Bridge Advisors builds non-correlated hedge funds to protect clients, beat the index

Coastal Bridge Advisors builds non-correlated hedge funds to protect clients, beat the index

Two non-correlated hedge funds aim to complement existing investments and protect our clients during market turmoil.

It was difficult to find non-correlated hedge funds as most do, in fact, correlate in times of uncertainty and distress. The challenge was to find a fund that would protect clients during periods of market turmoil.

Non-correlated hedge funds to complement portfolios

We hired two investment consultants, who previously had worked for highly respected fund managers, to build two non-correlative hedge funds that would complement existing investments in our clients’ portfolios.

The first, led by a former Soros team member, is a highly selective Fund of Funds which seeks high-risk adjusted returns with directional investments in a diverse portfolio of securities. This approach is used as a lower volatility option when investing in emerging markets.

The second invests with best-of-breed managers in niche strategies such as regional electricity trading, Treasury bill arbitrage, trade claims and other non-correlated strategies. This approach has experienced an annualized return since inception exceeding 12% with a standard deviation of 4.5%.

Creating solutions while retaining a conflict-free approach

These funds have beaten their respective HFRX hedge fund indices by 500 basis points.

Again, Coastal Bridge Advisors has no ownership interest in those funds so there is no conflict of interest.

IMPORTANT DISCLAIMER:

These case studies are provided for illustrative purposes only to provide an example of the Firm’s process and methodology. Past performance is no guarantee of future results. The results portrayed in these case studies are not representative of all of the Firm’s clients or the clients’ experiences. Different types of investments involve varying degrees of risk, and actual results may vary materially than those portrayed herein. Therefore, it should not be assumed that the future results of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by the Firm) will be profitable or equal the results portrayed herein. An individual’s experience may vary based on his or her individual circumstances and there can be no assurance that the Firm will be able to achieve similar results in comparable situations. No portion of these case studies is to be interpreted as a testimonial or endorsement of the Firm’s investment advisory services and it is not known whether the clients referenced approve of the Firm or its services. The information contained herein should not be construed as personalized investment advice. Please contact us for additional information with respect to the strategies and/or investments described herein.