Multi-Manager Funds

How we select managers
How we assess fund quality
How to find out more

Fortune Funds Ltd is a groundbreaking initiative between GFA and its investment management parent company, Fortune Asset Management Limited (FAM). FAM is a fully-fledged UK asset management firm, authorised and regulated by the Financial Services Authority (FSA).

Together, we have created a range of multi-manager funds to enable banks, asset managers and pension funds to draw on the resources of GFA's experienced team of analysts and offer cost-effective solutions.

Ten reasons to select GFA for Multi-Manager Funds

1. GFA is already well-branded and commercially successful. It is known among more than 1000 fund groups and has been used by the largest offshore fund managers to reach thousands of advisers and fund buyers for the past five years.
2. GFA is one of the few research providers with its business based in Europe, the region witnessing the fastest growth of alternative asset funds.
3. GFA provides a unique, privileged vantage point. Our research is not confined to hedge funds; GFA has been rating the top-performing long-only offshore funds since 1986 as well.
4. GFA is currently the only independent research provider that is not tied to a fund adviser or particular distribution channel. This enables us to provide unbiased, impartial advice on portfolio construction and optimisation.
5. GFA is incorporated and regulated in the United Kingdom.
6. Every investment in our fund of funds is supported by detailed and due diligence research that inform investors and intermediaries of investing in this strategy.
7. GFA has the expertise to offer specialist multi-manager funds and funds of funds, carefully calibrated to offer different risk return profiles to meet your clients' needs.
8. GFA's team of investment professionals have the know-how to perform stress-testing, scenario analysis, Value at Risk analysis and detailed attribution analysis. Our team has over 100 years of investment management experience and many members have worked in senior positions at the leading houses on Wall Street and in London.
9. Fortune Funds Ltd and its the Market Wizards Funds, in association with GFA and FAM, can offer clients both highly-affordable access to research and fund reporting, through its commitment to a web-enabled reporting system.
10. Working with GFA leverages the strong independent brand that has been established with the international business media and fund management trade publications throughout Europe, based on a "Best of the Best" (exit fund research product) investable universe of hedge funds and total return long only managers.

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How we select managers

To select managers, we use a rigorous four-step quantitative selection process:

1. Database screening The process of manager selection begins with the screening of our proprietary database covering 15,000 long-only funds and 4,000 hedge funds.
2. General risk We assess general risk using a powerful combination of analytical techniques and measures, including the Sharpe ratio and the Sortino ratio, plus standard and downside deviation.
3. Peer group risk To compare directly the returns of each fund in an asset class, returns are adjusted to have the same desired level of risk using the M-squared metric.
4. Specific risk We analyse specific risk using alpha/absolute return, information ratio, correlation and stress testing.

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How we assess fund quality

We assess each fund on four broad categories:

1. Investment style Confirmation, implementation, consistency and sustainability of investment style.
2. Adviser group Stability, size and track record of group, plus investment team credentials
3. Risk management Position monitoring (operations), currency hedge, single risk exposure (enhanced when illiquid), leverage: how liquid are the assets?, position size vs average daily trading volume, leverage controlled by provider (prime brokers) and investment strategy vs dependency on financing
4. Performance history Performance history vs investment objectives, consistency, stress test/contingency planning (bear market analysis vs market volatility).

We also advise on strategic and tactical asset allocation, sub-fund monitoring and portfolio diversification.

How to find out more

For more information on Fortune Funds Ltd, please contact us today on + 44 (0) 207 355 3355 or email us at info@fortune.co.uk.

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