Gottex Fund Management Holdings Limited has launched a global multi-asset investment program that will invest in both alternative and traditional investments similar to the successful US ‘sup
Gottex Fund Management Holdings Limited has launched a global multi-asset investment program that will invest in both alternative and traditional investments similar to the successful US ‘super endowments’.
The investment program will apply the investment principles of successful US university endowment funds and will allocate an average of 60% or more to alternative assets. The program will be actively managed and will pursue both strategic and tactical investment opportunities across all asset classes: hedge funds, private equity, commodities, long-only equity, fixed income, real estate and other real assets.
Over the last 15 years the ‘super endowments’, based principally in the United States, have delivered superior investment results by creating portfolios with major exposure to alternative assets. The low correlation and hedged nature of alternatives, combined with traditional asset classes and superior security and manager selection, have allowed the super endowments to outperform traditional balanced portfolios and individual asset classes.
They have been able to deliver equity-like returns with low volatility while outpacing both global inflation and global GDP growth. Gottex sees significant opportunities from investing a portfolio in a super endowment-like multi-asset structure.
Gottex believes the investment community is at the beginning of the convergence of alternative and traditional investment management. This is driven by the segregation of beta and alpha performance and the increased requirement for risk-adjusted returns.
The launch of the Gottex multi-asset product focused on delivering equity-like returns with much reduced volatility will be at the forefront of this development.
The Gottex initiative will include i) a complete multi-asset product offering an actively managed portfolio with a strategic asset allocation to both traditional and alternative assets with 60-65% in the latter, and ii) an alternatives-only multi-asset product invested in hedge funds, private equity, commodities, and other real assets.
The initiative will be managed by William Landes, Ph.D., a long time veteran of the asset management industry with experience managing portfolios in a wide range of global markets and asset classes. Dr. Landes recently joined Gottex after previously being Managing Director with responsibility for the Global Investment Research, Global Currency, and Global Asset Allocation teams at Putnam Investments.
Dr. Landes commented: ‘Gottex has seen increasing customer demand for an actively managed, truly multi-asset class product. Our program will strive to deliver superior results through a ‘super endowment-like’ strategic portfolio construction and the active management of asset class, market, and manager exposure.’
Gottex is a global leader in the management of alternative investments. Since 1999 the firm has developed an outstanding track record and significant expertise in fund manager due diligence, portfolio construction, and risk management. The investment management team of 55 investment professionals will be actively involved in the research and management of the Gottex multi-asset, multi-manager program.
