Hedge Funds

Improving Diversification and Risk-adjusted Returns

Hedge Funds, also known as absolute return strategies, are flexible tools that complement traditional asset allocation programs. Designed to exploit market inefficiencies through techniques such as arbitrage, opportunistic investing, and short selling, hedge funds are generally used to enhance return, reduce risk, or both. NEPC clients have been employing these strategies with considerable success for more than 17 years.

Most hedge funds are fairly illiquid, not very transparent, and subject to different risks than traditional managers. As due diligence is central to the NEPC philosophy, we’ve developed specialized monitoring and analytical tools to help our clients more effectively build and manage their hedge fund portfolios.

Portable Alpha

Portable Alpha is another leading-edge investment strategy that allows investors the opportunity to add incremental returns to their investments in a wide variety of asset classes. For example, we’ve identified managers that can overlay the relatively uncorrelated performance of hedge funds onto the returns earned by indices such as the S&P 500 and US Treasuries, allowing you the opportunity to earn potentially attractive returns above and beyond what these indices can provide on their own.