Real diversification

The bfinance Diversifying Strategies team supports investors with ‘Liquid Alternatives’ including hedge funds, multi asset, alternative risk premia and commodity strategies and (risk or currency) overlays.

In Manager Research and Selection, investors seeking liquid diversification are supported by our Diversifying Strategies specialists, while illiquid diversification is supported by Private Markets specialists—with appropriate cross-team support where relevant.

Diversification is a personal property. The appropriate implementation of diversifying strategies depends on each investor’s existing portfolio, specific objectives, tolerance for volatility and drawdowns, spending limitations and more.

When seeking diversification or applying risk management tools such as portfolio overlays, a fully customized client-centric research process maximises the benefits to the investor’s portfolio, while whole-of-market research maximises the choice of strategies which can achieve targeted objectives. The firm’s Operational Due Diligence unit is also available to support implementation.

Case Studies

Implementation in focus

01

Liquid Alternatives Portfolio Review

This client, a German insurance company, sought bfinance’s assistance to conduct a review of its conservatively invested liquid alternatives portfolio, which deployed assets in low net exposure and market neutral strategies.

02

Tactical Asset Allocation and Currency Overlay

This investor previously had a TAA overlay on regional equities and bonds but not on international investments. Here, they sought to extend this approach to the international portfolio—and also consider an FX overlay—in order to drive enhanced returns.

03

Market-Independent Absolute Return

This investor sought market-independent strategies which exhibit very limited equity / credit beta (structurally and empirically)—ideally less than 0.1 in normal and stressed equity markets.

04

Asia Multi-Strategy Hedge Funds

This investor was making a first-time allocation to Asian Multi-Strategy hedge funds.


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