SERVICES

1.  Analysis and Reconstruction of existing hedge fund portfolios
  • MACM will analyze your existing portfolio to replace any beta strategies with appropriate ETFs
  • We will analyze your portfolio to identify any process problems with your existing hedge fund
    investments
  • We will reconstruct your existing portfolio based on trader methodologies to derive true correlation
    benefits

2.  Design and Implementation of Appropriate Risk Templates
  • MACM will design appropriate risk templates based on the hedge fund strategy
  • We will work with the hedge funds and their service providers on your behalf to implement these
    templates

3.  Determination of Appropriate Stop Loss Limits
  • MACM will analyze the strategy and risk management, of each hedge fund investment in the
       investor’s portfolio, to determine appropriate drawdown limits for investment redemptions

4.  New Hedge Fund Manager Due Diligence
  • Conduct a thorough due diligence on the hedge fund manager to determine the depth and breadth of
    his expertise and the alpha generation viability of his strategy
  • Identify and outline the hedge fund manager’s alpha generation process
  • Understand the risk management process and identify key stop loss limits
  • Work with the investor’s operational due diligence team to perform reference checks on the manager
    and his process
  • Work with the investor to negotiate capacity, fees and redemption terms and conditions

5.  On-Going Due Diligence
  • MACM will ensure that the five inviolable commandments are still in place
  • Stated position, monthly, annual and peak to trough drawdown limits are being followed
  • Professional trading staff with core competencies is still intact
  • Monitoring of risk reports and returns on a weekly basis to identify any red flags in the portfolio
  • Conduct regular meetings, telephonic as well as face to face, with the hedge fund managers to go over
    profit and loss attributions, market views and positioning opportunities going forward
“Following the stop loss limits
is at a hedge fund manager’s
discretion, but monitoring
these stop loss limits is the
investor’s responsibility”
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©
2009, MA Capital Management LLC, All Rights Reserved.
MACM LLC
The Hedge Fund Experts
Our expertise spans not just the developed markets of the US, Europe and Japan but also the premier emerging markets of the world, including the BRIC economies of Brazil, Russia, India and China.
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