Investment Philosophy
Our core investment philosophy is to provide clients with a return stream that has low correlation to traditional investments like stocks and bonds, preserve capital, and seek to achieve the best risk-adjusted rate of return.
Leveraging our 27 years in the hedge fund business, we forge long-term partnerships with managers who share our values and standards of excellence and who have demonstrated their ability to generate returns and control risk across multiple market cycles. We find that partnering with hedge fund managers who truly understand risk enables consistent returns and limits downside volatility, ultimately seeking to achieve long-term success and diversification for our investors. Our repeatable investment process has allowed us to continually demonstrate our philosophy and provide clients with a true alternative solution.
Our investment team performs fundamental and quantitative research to identify specific strategies and managers that align with our investment philosophy. We seek to actively manage our fund of hedge funds to be uncorrelated to traditional equity and fixed income investments and to provide clients with portfolios that can compound capital during up and down markets. We also work with our institutional, advisor, and retail clients to construct customized hedge fund portfolios that meet the specific return and risk objectives of each individual client. We believe in an approach to portfolio construction that involves adjusting allocations based on our assessment of current and future market trends, striving to add alpha in the capital allocation process.
Chi-Rho leverages a network built with over 27 years of experience in the hedge fund industry to identify top talent. Once we identify a manager that fits within our broader strategy, our investment team performs a disciplined upfront and ongoing due diligence process to evaluate each manager’s strategy and operational capabilities. Chi-Rho believes in ongoing, hands-on investment management, holding frequent calls and meetings with our managers and possessing a deep understanding of each fund’s underlying investments.
Chi-Rho takes a bottom-up approach to risk analysis, understanding the drivers of each investment at the manager level and measuring adherence to internal risk policies and quality of the manager’s judgement. We manage risk at the portfolio level by maintaining diversification and stressing the underlying drivers of investment performance. Coupled with an opportunistic outlook, this framework allows Chi-Rho to take advantage of timing and market volatility to deploy and withdraw capital when necessary.