ACP Strategic Opportunities Fund II, LLC Ascendant Capital Partners’ investment philosophy is one that believes that diversification is paramount in the construction of fund of funds portfolios. It is Ascendant’s goal to build and manage multi-manager portfolios with long/short equity funds that exhibit low correlation with each other as well as with traditional asset classes over time. The ACP Strategic Opportunities strategy will make core investments in a broadly diversified portfolio of long/short equity hedge fund managers. Ascendant’s investment process follows a stringent “five step manager due diligence process” which includes the following:
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Step 1: Identify Potential Candidates. The investment goal is to identify and invest with long/short equity hedge fund managers who meet ACP’s criteria for experience, service providers, integrity, risk controls, and track record.
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Step 2: Review Material and Conduct Introductory Conference Call. If the interest in a potential investment candidate persists, a conference call with the fund’s management team is conducted in order to gather additional information.
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Step 3: Conduct On-site Interview. Before Ascendant invests with any manager, at least one on-site visit to a potential investment candidate’s offices is made.
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Step 4: Verify and Document All Information. The only funds that reach the verification stage are those that have moved through the prior three steps and continue to exhibit the risk/ return/ correlation characteristics that are desired. Most funds are eliminated prior to this stage. If the underlying fund does continue to be of interest and displays the relevant characteristics, the investment manager is asked to complete a due diligence questionnaire and also present several other pieces of information that are all reviewed and verified.
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Step 5: Investment Policy Meeting. A recommendation is written and the manager is proposed to the investment policy committee.
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