Investment Process

Portfolio Construction

Dorchester's Investment Committee performs portfolio construction and meets on a weekly basis to address issues in three major areas: Strategy Allocation, Manager Allocation, and Manager Monitoring.

Strategy Allocation

Allocations to strategies are based on the Investment Committee's opinions of the most attractive market opportunities and adjusted to comply with relevant portfolio objectives.

Manager Allocation

Individual hedge fund managers must provide incremental return without meaningfully increasing risk; reduce drawdown risk without meaningfully harming return; or, demonstrate attractive returns with little to no correlation to our portfolio. Allocations are sized relative to their expected contribution to portfolio correlation and drawdown risk.

Manager Monitoring

Dorchester's Research Team monitors existing managers to ensure that investment objectives are being met. This includes gathering high frequency data on the underlying hedge fund portfolios: attributions, exposures (asset, geography and sector), leverage and concentration, assets under management, and disclosure of the largest securities holding. In addition, Dorchester conducts regular conference calls with managers and must visit them on-site on an annual basis.