Competitive Advantage
At Cross Shore, we believe we have the following competitive advantages when it comes to constructing and managing a fund of hedge funds portfolio:
- Experience – Our investment team averages over 20 years of experience working with, researching and investing with the industry’s most respected institutional and boutique money managers. Our operations team averages over 25 years of financial experience and is led by our Chief Operations Officer who was previously the Chief Financial Officer of an $80 billion money management firm. This expertise provides us tremendous market insight into identifying the industry’s best managers and allows us to remain focused on the long term goal of generating superior risk adjusted results.
- Record – We have a proven, successful track record of managing capital across multiple market cycles. The result has been higher returns with less volatility than the broad market.
- Focused – We invest with long/short equity managers. While other funds of hedge funds may allocate capital to opaque, highly levered investment strategies, we have always invested in managers who demonstrate a transparent and repeatable process that is not reliant upon leverage to generate returns. In addition, we do not overlay the portfolio with additional leverage nor attempt to time the market by holding excess cash.
- Rigorous Analysis – We employ a comprehensive due diligence, monitoring and risk management process that covers all aspects of manager selection and allocation. While our process seeks to identify those managers with the expertise and skill set necessary to generate exceptional future returns, we equally focus on a manager’s infrastructure, back office and operational controls.
- Access – Our reputation and track record as experienced long term investors provides us access to the industry’s premier hedge fund managers. While many of the larger funds of hedge funds are capacity constrained forcing them to deploy capital to second tier managers, Cross Shore has capacity with many of the industry’s top managers.
- Transparency – At Cross Shore, transparency is paramount to the process. From our inception, we have always fully disclosed our underlying managers and performance attribution.