Controlling factor and sector risk

Caroline Cooley, Crestline Summit

Crestline Summit: Best Equity Market-Neutral & Quant Hedge Fund – Crestline Summit Equity Alpha was named Best Market Neutral Hedge Fund at the Hedgeweek US Awards 2020. Winners were recognised at a virtual ceremony on 29 October.

Summit Equity Alpha, which was launched in July 2015, is a multi-portfolio manager, equity market neutral alternative investment strategy. The fund aims to deliver strong risk-adjusted returns driven by alpha with a low correlation to the S&P 500. 

In receiving the award, Crestline Summit Equity Alpha was identified on a shortlist based on annual performance data compiled by Bloomberg for the 12-month period from May 1, 2019 to April 30, 2020. The industry then voted on the manager nominee shortlists. Voters included institutional and high net worth investors as well as peers and other industry professionals at fund administrators, prime brokers, custodians and advisers.

Summit Equity Alpha consistently delivered on its investment mandate in 2019, making money in 11 of 12 months, according to data reported to Bloomberg.

“In managing an equity market neutral strategy, stock selection and risk management are both paramount,” said Caroline Cooley, Chief Investment Officer of Summit Equity Alpha and a Managing Partner at Crestline. “It has been gratifying to see the team perform well, especially in navigating a challenging Q1 2020 and generating returns for our investors while protecting their capital.”

The fund’s success starts with its investment process. Here, the fund identifies and attracts experienced equity sector specialists with a minimum three-year track record. Currently, there are 24 portfolio managers on the fund’s platform with exposure to every S&P subsector.

“We identify equity portfolio managers that work within our risk framework to minimise market, factor and sector risks and deliver returns through stock selection,” Cooley says.

“Our culture is strong, and the team is made up of experienced investment, distribution and operations professionals who exemplify our commitment to serving as a trusted fiduciary,” Cooley concludes. 

The fund is an affiliate of Crestline Investors, Inc, which is an institutional alternative asset manager headquartered in Fort Worth, Texas. Since the firm’s founding in 1997, the firm has launched 15 specialised opportunistic investment vehicles that aim to exploit emerging and ongoing global market inefficiencies and dislocations in public and private markets. 

Caroline Cooley
Managing Partner, Summit Equity Alpha, Crestline Investors

Caroline Cooley is Managing Partner and CIO of Crestline Summit Equity Alpha, a multi-PM equity market neutral hedge fund. She also serves on the firm’s Executive Committee. Caroline has over 34 years of experience in the alternative investment industry as a portfolio manager, risk manager and trader Caroline previously was the CIO of Crestline’s Hedge Funds of Fund business, which grew to USD4 billion AUM at its peak, overseeing manager selection and portfolio management, since joining the firm in 1998. Before joining Crestline, Caroline was a Managing Director at the Culmen Group. From 1986 through 1997, Caroline was a derivatives trader and risk manager with Taylor and Company, an investment firm associated with the Bass Family of Fort Worth, TX. Caroline began her career in the investment industry at Manufacturers Hanover Trust Company (later merged into JP Morgan) in New York and Chicago after receiving her BA in Economics from The College of William and Mary in 1983. Caroline serves on the Advisory Board of Texas Wall Street Women and the Investment Advisory Committee of Texas Employee Retirement System. Caroline serves on the Board of Directors of Catholic Charities of Fort Worth.

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