Establish Fund Objectives
The investment process starts with the establishment of objectives and guidelines for investment. Guidelines set the rules of the game but are not absolute, inflexible limits. All allocations are viewed in the context of overall portfolio risk. Fund Objectives include the following:- Return Objective
- Absolute
- Long-term
- Risk Tolerance
- Volatility
- Leverage
- Beta or correlation
- Liquidity
- Diversification
- Among strategies
- Among managers
- Among hedge funds
- Among underlying markets and geographies