Placing risk management at the heart of the investment process

Risk management is systematically integrated at every step of the investment process: Hedge fund selection (systematic due diligence and visits, report writing, approval committee, etc.) Hedge fund monitoring (continued contacts, analysis of risk management reports sent by managers, etc.) Portfolio management (diversification across styles and strategies, over-exposure reduction, etc.) Qualitatively, we manage risk by adhering to our stringent due diligence process, by closely monitoring the hedge funds we are invested in and by diversifying assets in our portfolios. Quantitatively, we use several tools to measure risk at the portfolio level: value at risk analysis, stress tests, and proprietary models.

Understanding risk at the hedge fund level

Our risk management philosophy is based on understanding the risks taken by hedge fund managers and the source of investment performance. 3A’s analysts and portfolio managers study three essential factors:

• the exposure of each hedge fund to specific markets,
• the liquidity of hedge funds’ assets and realisation of profits,

• the operational and structural risks inherent in any alternative investment.

Using several of the numerous risk management methods

Do you want to know how 3A SA can help you in alternative investments? Please do not hesitate to contact us.

3A SA: The Swiss expert in alternative investing
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