LGT Capital Partners has launched a new hedge fund vehicle combining discretionary and systematic strategies.
The newly launched portfolio offers investors direct access to the individual building blocks of the hedge fund strategies allocated to the LGT Endowment, the firm’s principal evergreen portfolio. The program invests equally in discretionary and systematic hedge fund strategies and offers monthly liquidity.
The new commingled fund vehicle provides institutional investors and wealth management clients with streamlined access to hedge fund investments and offers regular liquidity. The program leverages LGT Capital Partners’ 25 years of experience in managing evergreen strategies through the LGT Endowment, the firm’s principal investment portfolio launched in 1998 – complementing our recently launched semi-liquid open-ended private equity and private credit strategies.
The hedge fund vehicle aims to deliver absolute returns with downside risk mitigation in any market environment. It is uncorrelated to traditional asset classes such as equities and bonds, and builds on LGT Capital Partners’ longstanding tradition of selecting best-in-class external hedge fund managers, as well as leveraging the firm’s direct, in-house quantitative investment capabilities.
The portfolio intends to invest in more than 30 hedge fund managers globally and to strike a balance between discretionary and systematic strategies. On the discretionary side, the focus will be on specialized teams that seek to generate profit through deep fundamental analysis in the form of single stock selection – investing in events such as mergers and acquisitions and various segments of the global credit markets. On the systematic side, the priority will be on quantitative hedge funds with strategies such as trend-following commodity trading advisors (CTAs), quantitative macro, short-term trading, equity-market neutral quants and AI/machine learning.
Roger Hilty, partner at LGT Capital Partners, said: “We are pleased to offer our clients a new and efficient way to invest in the best of both worlds within the hedge fund universe: those that are traded by humans and those that are run by computer models. The result is a diversified portfolio consisting of 15 distinct sub-strategies aimed at generating alpha.”
LGT Capital Partners has been investing in hedge funds for 25 years and has been managing its investments primarily through its proprietary Managed Account Platform since 2000 to ensure maximum transparency, liquidity and capital efficiency.
