K2 Long Short Equity Hedge Strategy – Multi-Manager

Our approach seeks to provide long short equity portfolios built with sub-advisors diversified across a variety of sub-strategies, regions, and sectors.

OVERVIEW

STRATEGY SUMMARY

  • Our rigorous "5-team, 5-step" manager due diligence process enables us to create a selective pool of managers we can combine in an effort to manage a portfolio with diversified sources of return drivers.
  • This approach provides multiple levers for our portfolio team to actively shift allocations based on our insights into market environments.
  • Our focus on risk transparency and management is central to our process, and we strive to provide an equity strategy that seeks to provide drawdown protection in market selloffs.
  • We offer a proven ability to negotiate preferential fees and terms with hedge fund managers on behalf of our investors.

We pair a deep understanding of our diversified pool of underlying managers with our near- and long-term market views to design portfolios that have the attractive asymmetric return profiles.” – Edward Burke

OUR APPROACH

Investment Philosophy

We believe that holdings-based transparency can help identify alpha-generating managers while managing market risks within a portfolio. We leverage our understanding of market risks to combine managers in ways that help enable equity appreciation while limiting equity risk based on market drivers in an effort to provide an attractive asymmetric return profile.

Investment Process Summary

  • Rigorous Manager Research: Our five independent teams focus on understanding manager return drivers and behaviors, as well as operational due diligence, investment process and risk management.
  • Active Strategy Allocation: Our understanding of the market environment drives our opportunistic strategy tilts across our investable universe of long short equity managers and strategies.
  • Integrated Portfolio Construction: Our access to underlying managers’ holdings enables us to combine managers with the goal of minimizing holdings overlap, while pursuing thematic exposures.
  • Disciplined Approach: Our independent risk management group provides another source of insights to help us improve our ability to accomplish the long-term strategy through changing market environments.

OUR TEAM

Edward Burke

Robert Christian
Senior Managing Director
Head of Investment Research
With firm since: 2010

Lillian C. Knight

Lillian C. Knight
Managing Director
Senior Research Analyst
K2 Advisors
With firm since: 2004