We implement a three-fold investment approach that is designed to reduce overall volatility by providing low correlation to traditional long-only portfolios. The investment process begins with broad allocations to alternative asset classes based on our assessment of global market conditions. We then implement specific allocations to various alternative strategies to further increase diversification and reduce volatility. In addition, we enable hedge overlay strategies that may be applied to any long-only ‘directional’ strategies during Bearish market conditions.

 

• Alternative Asset Allocations
• Alternative Strategy Allocations
• Active Hedge Overlay

 

Risk Management

 

We implement a multi-strategy approach to investing for a primary purpose - to manage risk. We measure investment risk through a proprietary risk management system that calculates and monitors a variety of risk factors that include: asset allocation exposure, long/short exposure, time-frame analysis, event-driven risk, liquidity risk, currency risk, and quantitative analysis. The ultimate goal of Ascentia is to provide superior risk-adjusted returns by properly managing risk.

 

Alternative Investments

 

Alternative investments represent a broad range of strategies and structures that fall outside the boundaries of traditional asset classes. The benefits of alternative investments are designed to complement, not replace, traditional investment strategies.

 

Traditional Investments	Alternative Investments
U.S. Equities	Hedge Funds
U.S. Fixed Income	Funds of Funds
International Equities	Commodities
Mutual Funds	Currencies
Money Market Funds	Managed Futures
	Private Equity
	Real Estate

 

Alternative Strategies

 

In order to properly diversify investment allocations to alternative investments, it is important to include a variety of alternative investment strategies. The unique value of alternative strategies is their ability to produce returns that are independent of broad market trends. During periods of market volatility and decline, alternative strategies typically perform better than traditional stocks and bonds portfolios. Alternative strategies play an increasingly important role for investors, primarily by creating investment opportunities in both Bullish and Bearish market environments.

Alternative Strategies
Absolute Return	Long / Short
Arbitrage	Momentum
Emerging Markets	Macro
Event-Driven	Market Neutral
Distressed	Trading

 

Divesified Portfolios

 

 By combining traditional investments with alternative investments, investors are able to obtain additional diversivication, thus reducing portfolio risk and volatility.