LGT Global Hedge Fund (LGHF)
LGHF is a broadly diversified portfolio investing in both discretionary and systematic hedge funds, leveraging LGT Capital Partners’ long experience in selecting external best-in-class managers as well as its direct, in-house quantitative investment capabilities. The portfolio’s underlying constituents have distinctive investment characteristics and complementary risk/return profiles.
What we do
LGHF provides institutional investors and wealth management clients with streamlined access to hedge fund investments and offers regular liquidity. The program leverages LGT Capital Partners’ 26 years of experience in managing sophisticated strategies through the LGT Endowment. The hedge fund vehicle aims to deliver absolute returns with downside risk mitigation in any market environment. It is uncorrelated to traditional asset classes such as equities and bonds and it builds on LGT Capital Partners’ longstanding tradition of selecting best-in-class external hedge fund managers, as well as its direct, in-house quantitative investment capabilities.
The portfolio invests in more than 30 hedge fund managers globally and seeks to strike a balance between discretionary and systematic strategies. On the discretionary side, the focus is on specialized teams that aim to generate profit through deep fundamental analysis in the form of single stock selection – investing in events such as mergers and acquisitions (M&A) and various segments of the global credit markets. On the systematic side, priority is assigned to quantitative hedge funds with strategies such as trend-following commodity trading advisors (CTAs), quantitative macro, short-term trading, equity-market neutral quants and artificial intelligence (AI)/machine learning.
Portfolio with exposure to all relevant hedge fund strategies
LGHF combines around 15 different hedge fund sub-strategies to create a diversified portfolio that is designed to generate alpha.
LGHF portfolio as of 31 December 2024
- Equity long/short is an investment style in which hedge fund managers take both long and short positions, exploiting inefficiencies by gaining an informational edge through rigorous fundamental analysis. It is primarily executed through bottom-up stock selection strategies by specialist hedge fund managers. Equity long-short consists of the following sub-strategies:
- Regional specialist strategies that focus on a relatively narrow set of countries with the clear goal of identifying winners and losers.
- Sector focused strategies that identify sectors undergoing structural changes driven by secular trends that will benefit a subset of companies to the detriment of others.
- Allrounder strategies that assume risks across a broad opportunity set, allowing hedge fund managers to be flexible and opportunistic in their allocations.
- Trading-oriented strategies that use an assessment of the market environment in addition to stock selection for directional positions in sectors, countries and markets as a whole.
- Event-driven is an investment style that groups together strategies that take specific positions focused on single transactions or one-off events. Those events may include M&A, distressed/ restructuring opportunities, credit events and other corporate activities. The goal is to generate returns from companies in need of refinancing or restructuring or from acquisitions/spin-offs or distressed situations. Sub-strategies are:
- Long/short credit strategies that focus on the debt side of the balance sheets with an emphasis on identifying relative mispricing within the capital structure.
- Merger arbitrage strategies that exploit the uncertainty premium involved in M&A transactions.
- Relative value is an investment style that seeks to generate returns with minimal market exposure (beta) by simultaneously going long and short in a related security. These types of strategies take advantage of market mispricing, liquidity mismatches, regulatory changes and irrational behavior. Sub-strategies are:
- Convertible arbitrage strategies thatunlock inefficiencies between the convertible bond and the reference stock, typically by going long in one and short in the other.
- Quantitative macro strategies use computer-based models and any sort of macro-economic data points as input in their systematic decision-making process.
- Quantitative equity strategies use computer-based trading to exploit market inefficiencies in global stock markets through algorithms that forecast equity returns.
- AI/machine learning strategies take advantage of the growing availability of data and technological advances in computer technologies.
- Trend-following CTAs with a focus on core markets invest in futures contracts and follow any form of price chart to identify positive and negative price trends, which they capture using various investment speeds.
- Trend-following CTAs with a focus on non-core markets employ similar investment techniques as those for core markets but look at a much wider set of markets when following trends.
- Short-term trading CTAs trade based on various investment techniques primarily using price, volatility and co-movements as input factors for their signal generation process.
- The risk premia strategy is managed internally at LGT Capital Partners and is a market-neutral and long/short quantitative macro strategy that provides cost-efficient, liquid and transparent access to attractive premia beyond market beta.
Our approach – why partner with us
With a 26-year track record of managing hedge fund investments, we offer clients a portfolio that builds on the following strengths:
- Attractive returns – The program seeks absolute returns that are driven by manager skills rather than by market direction.
- Accessing best-in-class managers – Clients are offered an actively managed hedge fund exposure that is otherwise difficult to access.
- Diversification characteristics – The risk/return profile is uncorrelated to traditional markets.
- Flexible allocation – Liquidity allows for quick repositioning to take advantage of opportunities as market conditions change.
- Transparent approach – Most hedge fund investments are made through managed accounts to ensure maximum transparency, liquidity and capital efficiency.
- Established team – Our global team of hedge fund investment professionals is based in New York, London, Pfaeffikon and Hong Kong.
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LEGAL DISCLAIMERS
This Alternative Investment Fund (AIF) is intended exclusively for, and may only be distributed to qualified investors/professional clients. The AIF and this marketing material is not for retail clients and for information purposes only, does not constitute an offer or a recommendation to buy or sell financial products or services, is personal to each recipient and may only be used by those persons to whom it has been handed out.
RISK FACTORS
Investors should carefully consider the product’s risks as detailed in the Offering Memorandum. The risks related to alternative investments generally include, without limitation:
Alternative investments are speculative, involve complex instruments, and carry a high degree of risk. Such investments generally involve additional risks including higher levels of borrowing, limited transferability of investments, reduced investor protection, and less information to investors than would apply in major securities markets. An investment should only be made by those persons who could sustain a loss on their investment and is only suitable for professional investors.
Investments can be subject to illiquidity, meaning there may be no buyer or seller available when the investor desires to invest or divest.
The value of investments may be affected by uncertainties such as political developments, changes in government policies, changes in taxation, restrictions on foreign investments and currency repatriation, unfavorable exchange rate movements, and other developments in the laws and regulations of countries in which investments are made. This product may include investments in emerging markets. Emerging markets investments present heightened political risks, economic risks, credit risks, exchange rate risks, market liquidity risks, legal risks, settlement risks, market risks, shareholder risk, and creditor risk.
Additional risks of alternative investments include: (i) substantial or total loss on the investment due to extensive use of short sales, derivatives and debt capital, (ii) incentives to make investments that are riskier or more speculative due to performance based compensation, (iii) volatility of returns, (iv) potential lack of diversification and resulting higher risk due to concentration, (v) high fees and expenses that may offset profits, (vi) no requirement to provide periodic pricing or valuation information to investors, (vii) complex tax structures and delays in distributing important tax information, (viii) fewer regulatory requirements than registered funds, (ix) credit risks i.e. the failure of counterparties to meet contractual financial obligations and (x) operational risk due to insufficient internal processes or systems, misbehavior of staff or external circumstances.
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LGT CP provides no guarantee with regard to its content and completeness, and does not accept any liability for losses which may arise from making use of this marketing material. This marketing material is not a prospectus and does not constitute an offer or a recommendation to buy or sell financial instruments or services. This marketing material is provided for informational purposes only. The Product will not be marketed to retail investors. For full details of the Product features and of the opportunities, risks, and costs associated please see the corresponding legal documents, the sales prospectus, the private placement memorandum, the management regulations or articles of incorporation, and the annual and half-yearly reports or the annual financial statements (further referred to as the “Product Documents”). The information and opinions contained in this marketing material come from the initiator or from other sources that LGT CP deems to be reliable. It can change without prior notice at any time. Unless stated otherwise, the indicated numbers have not been audited. However, this product may therefore be purchased only on the basis of the most recent Product Documents. The information and opinions contained in this marketing material constitute merely promotional communication, and not investment advice. Under no circumstances may reading this marketing material be a substitute for a personal consultation with a professional advisor before making any investment decision. Past Performance is not a guarantee, nor an indication of current or future performance. LGT CP may receive consideration from third-parties in exchange for distribution and other services, either as single or recurring payments. The information is valid only at the time this marketing material was produced. A change in the economic environment, possible changes in the law, and other events may cause future performance to deviate from that indicated in this marketing material. This applies particularly to statements regarding returns and taxes. Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency may lose value against the investor's reference currency. Benchmarks and indices are shown for illustrative purposes only, may be unavailable for direct investment, may assume reinvestment of income, and have limitations when used for comparisons because they have volatility, credit, and other material characteristics, such as number and types of securities, that are different from the product. This marketing material is intended for the recipients individual and exclusive use. It may not be reproduced either in part, or in full without the written permission of LGT CP. It is not intended for persons who, due to their nationality, place of residence, or any other reason are not permitted access to such information under local law. Neither this marketing material nor any copy thereof may be sent, taken into or distributed in the United States or to any U.S. person. Any Products Documents may be obtained free of charge from LGT CP upon request. Please refer to the end of the document for additional information.
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Additional information for outside of Europe
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