Fitch Ratings has assigned Lombard Odier Darier Hentsch an IP2-Investment Process rating for its alternative multi- management investment process.
Fitch Ratings has assigned Lombard Odier Darier Hentsch an IP2-Investment Process rating for its alternative multi- management investment process.
Ratings within the IP2 category correspond to ‘strong’ investment processes.
The Investment Process ratings methodology has been designed to assess the quality of an investment process in terms of resources, decision-making process, investment risk management and portfolio management and monitoring tools. For the purposes of these ratings, investment processes are defined by a combination of investment strategy, related investment products, and the resources most closely associated with the execution of the process. Fitch’s approach is founded on the belief that sustained or repeatable investment performance is largely dependent on the design and quality of a given investment process.
According to Fitch Ratings: ‘The IP2- rating reflects the fund manager’s lengthy track record and experience in this field, its stable, high-quality management teams, the backing of the group and its extensive access to alternative fund managers. The rating also takes into account the organisation’s ongoing efforts to improve the tracking of the operating and market risks faced by the underlying funds’.
Commenting on our Fund of Hedge Funds capability, Fitch also added: ‘The investment process used by LODH favours a high-conviction investment style, focusing on the selection of underlying funds with a proven and original management style that offers an entrepreneurial structure. It focuses more on qualitative, documented research of the underlying funds than on quantitative performance and risk analysis. The investment process is implemented by a well-experienced and very stable team of three portfolio managers, working closely together, and four analysts. It benefits from extensive access to the universe of alternative fund managers and their capabilities.’
Background note: Lombard Odier Darier Hentsch has an active presence in the world’s leading financial centres with 20 offices in 15 countries worldwide. With some USD 115 billion under management, the Group has a headcount of almost 1,700. Lombard Odier Darier Hentsch offers its clients a broad range of asset management advice, financial products and specialised services.
