Strategy
What is a multi-asset
strategy?
A multi-asset strategy invests in various types of assets and sometimes combines alternative strategies as well.
Our proprietary multi-asset strategy utilizes a multi-layered investment process based on modern portfolio construction techniques to determine its allocation, utilizing a comprehensive set of traditional and alternative assets classes, factor risk premia strategies and alpha processes. The strategy also uses a proprietary economic cycle model, in order to assess how the differentiated behaviour of multiple asset classes and strategies can help improve portfolio outcomes.
A subset of our multi-asset strategy approach is called our absolute alpha strategy which combines return drivers that are not dependent on directional moves in the equity and fixed income markets. Combining multiple sources of uncorrelated returns provides investors with a unique strategy aimed to enhance risk-adjusted returns.
Why invest in our multi-asset strategy?
- Performance enhancement. The strategy is engineered to seek returns in a manner differentiated from traditional balanced or diversified strategies. It uses additional hedging tools that aim to lower the overall risk profile, thus enhancing the quality of returns garnered.
- All-in-one solution. The strategy combines the firm’s best ideas by deploying the investment expertise of the equity, fixed income, arbitrage and quantitative teams in one strategy.
- Risk management. The risk-budgeting process uses a variety of risk measures, and various time horizons within those measures, to understand the characteristics of the underlying strategies via both qualitative and quantitative approaches to achieve desired risk exposure of the underlying strategies, as well as the overall level.
- Diversification. The strategy aims for a low correlation to traditional stocks and bonds in a portfolio that can enhance risk-adjusted returns.
How does our multi-asset
strategy work?
Our multi-asset strategy is a total portfolio approach: the combination of assets and strategies is curated to achieve better diversification. Those assets may be traditional or alternatives themselves, but the capital is used efficiently with futures to garner asset class exposures. More capital exists in the structure to reap diversification benefits from uncorrelated returns, like factors and other sources of alpha.
Our Absolute Alpha Strategy combines the firm’s best ideas by deploying the investment expertise of the equity, fixed income and merger arbitrage teams, and the factor risk premia of the quantitative team. The low correlation among these components to equity markets aims to enhance risk-adjusted returns.
Picton Mahoney
Absolute alpha strategy
Tail Risk Hedges
- Portfolio
Management
Expertise - Market Neutral
Equituy - Special Situations Fixed Income
- Merger
Arbitrage
- Factor
Risk Premia - Momentum
- Quality
- Value
Who is our multi-asset strategy suitable for?
Our multi-asset strategy may be suitable for investors who:
- Seek an all-in-one solution that is engineered to seek returns in a differentiated manner from traditional balanced or diversified strategies.
- Want to lower their overall risk profile, thus enhancing the quality of returns garnered.
- Seek an absolute alpha strategy that aims to enhance overall portfolio diversification by combining several return drivers that are not dependent on directional moves in the equity and fixed income markets.
What multi-asset strategy investment products does Picton Mahoney offer?
Alternative Investment Solutions are available as mutual funds, liquid alternative funds and hedge funds. Our suite of Fortified Mutual Funds, Fortified Alternative Funds and Authentic Hedge® Funds give investors more choice and ease of access to alternative strategies, adding an alternative source of returns to fortify a portfolio. Our goal, for over 18 years, through different market cycles and investing environments, has been to improve the quality of returns by offering alternative investment solutions.
Related Fund Profiles
This information has been provided as a general source of information, is subject to change without notification and should not be construed as investment advice. This material should not be relied upon for any investment decision and is not a recommendation, solicitation or offering of any security in any jurisdiction. The information contained in this material has been obtained from sources believed reliable, however, the accuracy and/or completeness of the information is not guaranteed by Picton Mahoney Asset Management (PMAM), nor does PMAM assume any responsibility or liability whatsoever. All investments involve risk and may lose value. This information is not intended to provide financial, investment, tax, legal or accounting advice specific to any person, and should not be relied upon in that regard. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.
There is no guarantee that a hedging strategy will be effective or achieve its intended effect. The use of derivatives or short selling carries several risks which may restrict a strategy in realizing its profits, limiting its losses, or, which cause a strategy to realize or magnify losses. There may be additional costs and expenses associated with the use of derivatives and short selling in a hedging strategy.
The offering of units of the Picton Mahoney Authentic Hedge® funds are made pursuant to an Offering Memorandum only to those investors in jurisdictions of Canada who meet certain eligibility or minimum purchase requirements. Prospective investors should consult with their investment advisor to determine suitability of investment. Please see the Fund’s Confidential Offering Memorandum for more information, including investment objectives and strategies, risk factors and investor eligibility.
Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Alternative mutual funds can only be purchased through a registered dealer and are available only in those jurisdictions where they may be lawfully offered for sale.