Liongate’s aim is to select, combine, and monitor the best hedge fund managers for its portfolios in conjunction with the firm’s current macroeconomic views. In order to do so, Liongate’s strategy harnesses both quantitative and qualitative principles.
Liongate’s propriety database facilitates the quantitative screening of hedge fund managers. This process involves the collection of performance and investment strategy data from approximately seven thousand hedge funds. This information is kept recent by daily uploads from industry and proprietary sources. The collected data is filtered across various factors such as risk- return profiles, experience and integrity in order to methodically compare managers to their peers.
This quantitative approach is then supported by the experience and qualitative judgement of the research team. Resultant potential managers are evaluated through conference calls, onsight visits and other due diligence procedures. Unlike other firms, Liongate seeks to truly develop open relationships with underlying managers and participate in their evolution. By establishing such relations, Liongate is able to better identify those managers with clear, disciplined and robust investment processes.
Only after satisfactory completion of both processes is a new manager considered for addition to a Liongate portfolio. Once a manager has been added, regular calls and meetings facilitate constant re-evaluation of underlying managers alongside rigorous risk, performance and strategy observations.