Hedge Funds

Hedge Funds

Kensington has developed a unique vehicle for the market to provide investors with access to the best emerging Canadian hedge fund managers. Kensington’s Hedge Fund comprises a multi-strategy/multi-manager fund of emerging Canadian hedge fund managers in a single comprehensively diversified portfolio.

The goal of the Fund is to provide investors with strong performance with greatly reduced risk and low correlation to public equities. In 2017, the Kensington Hedge Fund was awarded second place for best 5-year Sharpe ratio in the multi-strategy category.

Investment Strategy

The Kensington Hedge Fund 1 (KHF1) is a unique offering of alternative strategies that provides investors with a platform to take advantage of the hedge fund environment. Kensington’s investment team has carefully scrutinized the alternative strategies universe to provide a product that aggregates best-in-class strategies while limiting risk exposure and correlation to traditional assets.

The combination of manager selection and style diversification serves to provide a holistic approach to hedge fund investing while minimizing the inherent risks that one might receive from investing in a single manager.

Diversification and protection

It is becoming more apparent in today's market that having a well-diversified portfolio across multiple asset classes is critical to providing long term capital appreciation. With multiple new risks on the horizon seeking returns from as many uncorrelated sources as possible can help to ensure you are not taking on undue risk. If 2008 was an indication of how volatile markets truly can become it is important that investors continue to look at alternative uncorrelated strategies to help store their wealth.

KHF1 provides a vehicle to assist in diversification as well as the potential protection of your assets by creating an alternative, low-risk option to traditional investing.

Focus on emerging managers

At the core of Kensington's investment process is manager selection. Ensuring that KHF1 not only holds a diversified strategy but a strategy consistent of managers set to outperform their peers is critical to our investment process.

Kensington continues to believe that emerging managers tend to outperform their much larger, better known competitors. Although not always the case, KHF1 utilizes an allocation tilt to emerging managers and statistical analysis has supported that these younger, hungrier and more nimble managers yield superior performance with lower volatility, both in the long and short term.

In addition to an emerging manager tilt Kensington is consistently monitoring their current managers and performing analysis on potential new investments in order to ensure that their portfolio holds the best possible combination of alternative strategies.

Actively monitoring the hedge fund environment

Actively monitoring the hedge fund environment

Hedge fund strategies come in all shapes and sizes and investment strategies utilized in the universe can vary greatly. Kensington ensures that not only are you well diversified with in the hedge fund environment but you are also invested in strategies that will be advantageous over the long term.

By continually monitoring and exploring current and new investment strategies Kensington removes the difficulty behind knowing where in the hedge fund environment to invest and makes your investment decision easy.

Portfolio

Hedge Funds | Kensington