Case Studies

Pier

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.