• Alternative Investments Platform

Alternative Investments Platform

In addition to managing total portfolios for high net worth families and institutions, we also manage capital for investors seeking a focused mandate in a single asset class.

  • Our alternatives platform has an experienced team of specialized professionals and a strong track record delivering returns well ahead of competitors and passive indices.
  • We offer highly customized solutions in hedge funds and private investments, covering the full spectrum of strategies, typically not available in the public markets.
  • These areas offer very attractive opportunities given the potential to harvest return premiums that are driven by liquidity, complexity, scarcity, industry fragmentation, regulatory impediments, and barriers to entry.

Hedge Fund Investments – SCS Program

The goal of a well-constructed portfolio of hedge funds is to offer investors a unique risk/reward proposition: robust expected returns over the market cycle, while still maintaining good downside protection during corrections. Hedge funds are able to source returns from assets and strategies that are difficult to replicate in more traditional equity and fixed income vehicles. When implemented with appropriately negotiated fee schedules and well-designed fund structures, hedge funds are a powerful addition to most any client portfolio. A representative example of our current portfolio exposures is below:

Hedge Fund Investments

CREDIT

  • Structured Credit: Niche pre-2005 vintage and esoteric ABS with high complexity and limited scalability
  • Stressed Corporates: European post-reorganization loans, off-the run small issues, sovereign turnarounds
  • Distressed Situations: Liquidating estates, distressed for control with top restructuring teams

EVENT DRIVEN

  • Merger Arbitrage: Attractive deal spreads with limited market exposure and large tax reform upside optionality
  • Special Situations: Spinoffs, tax-advantaged corporate reorganizations, NOLs, litigation settlements

EQUITY LONG/SHORT

  • Sector Specialists: Sectors with high dispersion of company outcomes like Technology, Media, Consumer Travel & Leisure
  • Geographic Specialists: Markets with inefficient pricing and significant information barriers such as China and India
  • Unique Data Moats: Large infrastructure and data investments lead to sustainable analytical edge

MULTI-STRAT

  • Insurance-Related: Highly diversified across natural catastrophe, cyber, auto, terrorism, commission factoring, run-off portfolios
  • Fixed Income RV/Macro: Benefit from reduced arbitrage capital and wider spreads across global rates markets

CO-INVESTMENTS

  • Top off exposure to our managers’ highest conviction ideas at reduced fee rates

Private Investments – SCS Program

We view private investments as an attractive source of risk-adjusted returns. Private equity has historically offered high absolute returns with significant upside potential. Private real assets has historically provided strong returns with less inflation risk and lower correlation to equity and credit markets. Private credit has historically offered attractive returns with a substantial current yield. A representative example of our current portfolio exposures is below:

Private Investments

EQUITY

  • Deep Sector Focus: Software, branded consumer, industrials, healthcare services, biotech, specialty chemicals, aerospace
  • Operational Expertise: Turnaround, restructuring, and bankruptcy specialists
  • Lower Middle Market: Highly inefficient market segment with low purchase price multiples, drive value through professionalization
  • Top-Tier Venture: Highly sought after franchise firms, next generation of industry leaders

REAL ASSETS

  • Real Estate Regional / Asset Type Specialists: Micro-market expertise, vertically integrated owner-operators
  • Deep Value Energy: Small-cap, upstream E&P producers

CREDIT

  • Direct Lending: Origination for sponsor-backed and non-sponsored middle market companies
  • Special Situations: Distressed debt, rescue financings, NPLs, and adjacent opportunities

CO-INVESTMENTS

  • Top off exposure to our managers’ highest conviction ideas at reduced fee rates