Multi-Strategy

Overview of Strategy

A Multi-Strategy approach seeks strong risk-adjusted returns across market cycles using a range of alternative strategies such as long/short equity, fixed income and event-driven. Depending on the opportunities in the market, this strategy attempts to shift exposure between these alternative strategies to reduce risk. The goal of a multi-strategy approach is to deliver consistently positive returns regardless of the movement in equity and bond markets.

Strategy Benefits

Consider investing in a Multi-Strategy approach if you’re looking for:

  • Low correlation – a multi-strategy approach generally has low correlation to equity and fixed income markets.
  • A flexible approach – invests in a variety of investment strategies managed by expert managers in each strategy.
  • Broad diversification – diversification benefits through multiple strategies, sectors, capitalization and style.

Multi-Strategy Investment Characteristics

Access to multiple investment managers across strategies
Uncorrelated returns compared to stocks and bonds
Broad diversification by investing in multiple strategies
Flexible investment approach

Key Strategy Considerations

  • The number and type of strategies
  • Correlation between investment managers
  • Ability to shift exposures between strategies
  • Selection criteria of investment managers