Our Edge
"Knowing what to look for and the judgment to know when we find it."
Experience
Our founders are former hedge fund managers themselves and have personally invested in hedge funds for almost twenty years. Our partners possess deep relationships in the Wall Street, private equity and investment management communities, including knowledge of best practices in fund operations and administration.
Manager Selection
We prefer hedge fund managers that:
- have more experience than the industry at large,
- are disciplined about their growth in assets under management,
- perform original, thorough research, and,
- are aligned with our interests by investing their own personal capital alongside ours.
Due Diligence and Risk Measurement
Our due diligence requires the collaboration and approval of both Investment and Operations teams. Both teams pursue the disclosure of granular details, including security-level positions, custodial arrangements and cash management practices. Our continuous monitoring of hedge funds includes monthly exposure and position disclosures and is complemented by our proprietary risk allocation and exposure data tool, SLINGSHOT
SM, as well as commercially available systems.
Long Term Orientation
We eschew strategies or managers that use excessive leverage to generate adequate returns. We disapprove of performance chasing by hedge funds, and do not frequently trade underlying managers ourselves. We seek to maintain relationships over multi-year investment cycles.
Size
With over $1 billion of assets under management, our investment size neither overwhelms nor is immaterial to the hedge fund managers with whom we invest. Dorchester is large enough to have the systems and expertise of an institutional firm, yet small enough to remain entrepreneurial and principally focused on our clients' capital.
