Through a sub-advisory service, Lakeville Capital Management provides manager selection and due diligence, advanced quantitative analysis of managers and portfolios, and the development and management of niche multi-manager programs. In effect, fund of funds can outsource various functions to LCM.
See Sub-Advisory Services Presentation
- Manager Analysis, Selection and Due Diligence
Our substantial experience and industry knowledge is used to identify top performing, alpha generating managers in selected hedge fund strategies using quantitative and qualitative methodologies
- Quantitative analysis is used to evaluate hedge funds along multiple criteria including risk, alpha generation, performance quality and style adherence.
- Factor analysis, stress testing, scenario analysis, factor analysis and value at risk provide a comprehensive assessment of hedge fund risk.
- Peer group analysis for various strategies along multiple risk and return dimensions assures that “best of breed” managers are selected.
- Years of industry and litigation support experience is used to conduct comprehensive due diligence reviews of managers including compliance and legal due diligence performed jointly with IMS Consulting Partners, a market leader.
- Extensive networking and industry experience allows us to evaluate emerging managers and complex and niche strategies.
- Consideration of portfolio risk and return objectives; consideration of desire for more or less exposure to hedge fund strategies or asset classes.
- Customized and Niche Multi-Manager Portfolios
LCM uses quantitative and qualitative experience and methodology to help fund of funds develop, monitor and manage both diversified and specialized fund of funds. At present, LCM has developed the following niche programs:
- Capital Preservation Fund using a diversified group of low volatility, low correlation managers.
- US Equity Fund combining a high alpha group of managers in a variety of strategies linked to the US equity markets including long/short equity; event driven; mergers and acquisitions; market neutral and multistrategy.
- Foreign Exchange Fund combines a group of hedge fund managers devoted entirely to foreign exchange markets using a variety of strategies including trend following, yield differential and volatility based strategies.
- See sample project.
