Identifying High Quality Managers

Is the manager's performance the result of luck or skill ?
The manager must offer a coherent and proven investment strategy, demonstrate why the strategy works and present evidence that it has in the past, and offer compelling reasons why it is likely to do so in the future.
Is the investment process repeatable ?
There must be a clear pathway from idea generation to execution embedded in a process that is repeatable. This includes the infrastructure (people, systems, and resources) needed to execute the investment strategy.
Is a well-designed and thoughtful risk management process in place ?
Fund managers’ ability to find investment opportunities and apply leverage, affords them more opportunity to make money irrespective of market conditions. But with greater opportunity often comes greater risk. Risk management is essential.
Is the manager someone we would trust with our money?
This brings in “softer” data, such as the manager’s personal and educational background, his or her work history, reference checks and emotional maturity.
Is the operational infrastructure stable, transparent and effective?
Amid volatile and uncertain markets, there is a greater need for investors to focus on a manager's operations. We review critical operational functions for soundness such as fund and organization structure, service providers and business partners, corporate governance and oversight, counterparties, valuation policies, business contingency and continuity, and asset stability.
Disclosures you need to understand.
We offer securities through Silver Leaf Partners, a member of the FINRA, NFA and SIPC. Through Silver Leaf, we provide, among other things, marketing introductory services to hedge funds and other private investment vehicles. We do not provide investment counsel to qualifying investors and do not certify any information provided to such investors. To determine suitability, we recommend that all related offering documents are secured, read and understood; a thorough due diligence should be conducted and expert independent counsel should be consulted prior to investing. We further caution that past performance is not necessarily indicative of future results.