¨       On the one hand, traditional financial markets are proving to be increasingly volatile

¨       Shifts in interest rate environments bring along uncertainties and further dislocations for the different market players

¨       New and increasingly complex financial derivatives are being created to meet investor needs and to provide for
   increasingly innovative hedging techniques for market players

¨       As a result, the asset management world is getting more and more sophisticated with an enhanced focus on
   optimising the risk adjusted return ratio of investments

¨       History has shown the need for the de-correlation of performance with traditional markets and investments

¨       Diversification has become a crucial focal point and an evident target

¨       All these different factors lead investors to look for low volatility absolute returns

Direct or Delegate Investments

Investors face two alternatives:

1- Investing directly in hedge funds

The first option involves a need for substantial resources both in terms of infrastructure and expertise. The investor will need to carry out quantitative & qualitative analysis and to continuously monitor funds and managers.

Furthermore, the investor will be confronted with the problem of limited liquidity and lack of critical mass thus making access to talent increasingly difficult.

2- Investing in one or several multi-managers fund

Fund of hedge funds managers are specialized professionals who offer diversification across different strategies and hedge fund managers. Investors will benefit from a professionally managed, specialized team who focus entirely on manager selection and portfolio management. Experience and knowledge of the investment environment are crucial factors.