Liongate’s portfolio construction process is designed to ensure that the allocations to investment strategies and managers are consistent with the portfolio’s risk and return objectives. The aim of the process is to create well diversified portfolios that minimize common exposures between managers. The firm’s portfolios are diversified across such factors as manager, strategy, economy, geography, market, trading style, liquidity, duration and size.
Fundamental to this process is the continued monitoring and re-balancing of the portfolio. Liongate actively re-weights its portfolios to ensure they mirror our top-down, macro-economic views and contain the right set of strategies and managers that will achieve superior risk-adjusted returns given these views. Though always maintaining predefined diversification guidelines, this active approach results in strategy weightings being adjusted between three to five percent every month, enabling Liongate to capture market opportunities that other firms miss.