Hedge Fund Solutions
We have provided hedge fund investment solutions for our clients through our proprietary Managed Account Platform since 2000. Our portfolios are focused on delivering absolute returns with downside mitigation in any market environment and are uncorrelated to traditional asset classes such as equities and bonds.
What we do
Our hedge fund portfolios are focused on absolute returns in any market environment. We manage hedge fund investments through our proprietary Managed Account Platform that allows us to customize strategies and ensures full position-level transparency on a daily basis. With this platform, we mitigate counterparty risk while generating returns. Our hedge fund solutions are characterized by their focus on generating absolute returns through market-neutral implementation and downside mitigation.
Hedge funds alpha from 10,000+ instruments across asset classes
Our team of investment specialists has access to a total universe of 15,000 hedge funds worldwide that trade more than 10,000 instruments across global equity, fixed income, currency and commodity markets. We focus on:
- Discretionary hedge fund strategies – Long/short equity, long/short credit, merger arbitrage, convertible bonds arbitrage and global macro
- Systematic hedge fund strategies – Trend following commodity trading advisors, trend following alternative markets, quantitative macro, short-term trading, quantitative equity, and artificial intelligence/machine learning
Our approach – why partner with us
Our hedge fund solutions are focused on generating stable returns to enhance portfolio resilience and they are a source of diversification in an environment of changing bond-equity correlation. Our clients benefit from:
- High-class hedge fund managers – We take a bottom-up approach to building our portfolios by identifying and investing in high-class hedge fund managers worldwide to maximize performance for our investors in all our sub-strategies.
- Distinct access to hedge funds – In 2000, we created our proprietary Managed Account Platform, providing unparalleled access to a vast universe of hedge funds.
- Market neutral implementation – In our portfolio construction, we focus on market-neutral implementation to achieve absolute returns with downside mitigation.
- Best of both worlds – We offer access to liquid systematic strategies and discretionary alpha managers.
State-of-the art Managed Account Platform
By investing in hedge funds through segregated managed accounts, our investment team has full position-level transparency and liquidity with the underlying managers. Rather than investing directly in hedge funds, managers replicate the fund’s strategy for us and our clients invest through our state-of-the-art Managed Account Platform, benefitting from higher capital efficiency and preferable fee structures.
Team – an average of 19 years of industry experience
Our Hedge Fund Solutions team benefits from the combined expertise of our investment professionals, due diligence analysts and risk managers. Our team is based in New York, London, Pfaeffikon and Hong Kong.
“My role in the Hedge Fund Solutions team at LGT Capital Partners enables me to find creative solutions to challenges and to seize opportunities. My day-to-day work ranges from sourcing the most promising, sometimes undiscovered talent, to managing portfolios and interacting with clients. While the firm has enjoyed tremendous success since 1998, we have also been able to maintain our culture, which is a key feature to retain and attract talent.”
At the forefront of innovation
"I have been with LGT Capital Partners since 2003. What stands out for me is the firm’s culture and entrepreneurial spirit, which motivates us and gives us the freedom to innovate. We keep on track of what is happening in the hedge fund space and with other alternative investments, allowing us to develop cutting-edge solutions for our clients and principal investments. I enjoy being at the forefront of investment innovation."
Passion for hedge funds
"After studying finance, I joined LGT Capital Partners as part of a graduate program. I had the opportunity to work in different teams before joining the Hedge Funds Solutions team. Given my deep interest in financial markets, I find the hedge funds industry fascinating, especially the way in which a broad range of top-notch trading strategies are applied to various asset classes."