BSP believes that a diversified and well balanced portfolio of outstanding hedge fund managers can deliver absolute and sustainable risk adjusted returns on a long term basis.
BSP investment strategies focus on:
The identification of outstanding global hedge fund managers on a risk/reward basis. This is done by using advanced statistical and analytical tools together with disciplined qualitative due diligence procedures. Only by combining all these processes, can hedge fund managers be evaluated adequately.
Intelligent and active allocation to strategies and funds is a key factor in achieving target returns within defined risk parameters. This should be done through combining strategy optimization techniques with the understanding of the relationship between numerous macroeconomic variables and the performance of the various strategies, and a clear assessment of the macroeconomic environment.
An astute assessment of these variables, together with risk management tools, facilitates timely shifts in the strategy and fund allocation. This is crucial in enabling BSP's investment strategies to meet long term performance targets.
Constant monitoring and tracking for sustainable returns at a strategy and fund level is carried out vigorously. Fund manager style drift, market exposure, declining alpha and deviation from expected risk parameters are constantly assessed.