In our latest instalment of Alternative Views we speak to Donald Pepper, co-CEO, Head of Multi-Strategy at Trium Capital, who explains why the current market euphoria reminds him of 2007, and why institutional allocations to hedge funds remain puzzlingly low.

His perspective comes as the multi-strategy model, particularly outside the biggest global names, has come under pressure amid fierce talent wars and spiralling costs of hiring and retaining portfolio managers. The pressure to balance expensive talent with fee structures acceptable to investors has intensified across the industry.

Trium has a distinct approach within the multi-strat world, allowing managers to launch their own single-strategy funds alongside its multi-strat vehicle. This attracts what Pepper calls "refugees" from larger platforms who prefer running something with their name on it.

Pepper also discusses his unconventional risk management philosophy, the power of low cross-correlations in reducing portfolio volatility and why mean reversion can be as valuable as cutting risk.