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.
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