Our Investment Objective and Philosophy
Richmond's investment objective is to generate long-term capital growth. We invest with a selection of hand-picked hedge fund managers from around the world. The fund is limited to fund managers specialising in one of the investment strategies described below. Please note that these descriptions are generic and should not be taken as fixed or complete descriptions of the relevant strategies.
- Global Macro: Global macro managers may carry long and short positions in any of the world's major capital or derivative markets, reflecting their views on overall market direction as influenced by major economic trends and/or events. The portfolios of these funds can include stocks, bonds, currencies, and commoditiesin the form of cash or derivatives
- Equity Long/Short: Equity long/short managers are equity-oriented and may carry long and short positions in any major and regional markets. Managers have the ability to shift from a net long position to net short and may also use futures and options to hedge.
- Fixed Income Relative Value: Fixed income relative value managers aim to profit from price anomalies between related interest rate securities. Most managers trade globally with a goal of generating steady returns with low volatility. This category includes interest rate swap arbitrage, US and non-US government bond arbitrage and forward yield curve arbitrage.
- Event Driven: Event driven managers seek to identify securities that have a significant value gap between the market value and fundamental value. These managers attempt to identify specific catalysts that will unlock the value gap and may only invest if a potential catalyst exists.
- Quantitative: Quantitative managers use quantitative, computer-driven models to make investment decisions. The models may utilise any combination of fundamental, technical or other factors. This strategy typically leads to investment in a wide array of assets and securities including currencies, equities, futures, options, credit and interest rates
Richmond allocates capital to hedge fund managers who specialise in these investment strategies, after an evaluation process which will typically include qualitative and quantitative due diligence on the hedge fund manager concerned.
