Hot Hedge Fund Mandate
An open hedge fund mandate was obtained from a large multifamily office. It is looking to invest in niche and new or interesting strategies that are uncorrelated to current market conditions, such as volatility arbitrage funds. The group will be allocating to new managers in the next six months if it finds the appropriate fit for its mandate. The firm is seeking up to five new managers for potential allocations.
The most important aspect of its search is the funds’ liquidity terms. The firm is presently focusing on opportunities that have high-liquidity terms of weekly or shorter. If the firm cannot receive the appropriate liquidity through the fund structure, it will invest through a managed account structure. The family office has no set return expectations and maintains no strict volatility parameters. These requirements are dealt with on a case-by-case basis. Instead the firm’s focus is on funds exhibiting great risk/reward profiles.