Investment Philosophy
Alternative Investment Group seeks to provide investors attractive long-term returns and controlled risk by protecting capital in down markets, earning attractive absolute returns in strong markets, and outperforming broad equity market returns at a lower level of risk over a full market cycle.
We identify talented, highly experienced, fundamentally-oriented hedged managers, with a bias toward investing early in managers starting their own funds. We believe there is a “bell curve” of hedge fund talent and a wide dispersion of returns between first quartile and median managers, and our goal is to utilize only top-tier managers.
Our initial and ongoing due diligence is rigorous and intensive, using both quantitative and qualitative criteria and implemented by the firm’s investment partners. At the overall portfolio level, we select managers and strategies with low correlations to construct a well-diversified portfolio, with the goal of enhancing return and reducing volatility.
Our approach to risk management is multi-dimensional, focusing on investment, organizational, and operational risks. Recognizing that most of the failures among hedge funds occurred because of operational weaknesses, we have a dedicated risk management partner focused on this critical area.
We underscore our philosophy of aligning our interests with those of our investors in several ways. Alternative Investment Group is 100% owned by its five partners, who have substantial personal capital invested in the firm's strategies. We are compensated when our investors do well, through a fee structure that emphasizes performance fees over asset management fees. We are disciplined about asset growth and will accept new assets only to the extent these can be invested with top-tier managers.
Providing investment management services is our only business; we receive no fees for brokerage, consulting or other activities.
