Risk Management
Controlling Risk is of Paramount Importance
- Risk is minimised by diversification - > 40 underlying hedge funds
- AFM avoids speculative or opaque strategies
- Robust framework of risk controls in place:
| Maximum | Typical | |
| Exposure to long/short equity | 75% | 50% |
| Exposure to arbitrage and other strategies | 75% | 50% |
| Percentage of fund in any one strategy | 20% | 2½% - 20% |
| Position in any single underlying hedge fund | 5% | 2½% |
| Maximum percentage owned of any hedge fund | 10% | <10% |
| Leverage of Absolute Fund | 10%* | NIL |
| Liquidity of Underlying hedge funds | Quarterly † | Monthly, Quarterly |
* Solely and temporarily to fund redemptions
† With two exceptions
Authorised and Regulated by the Financial Services Authority
