With our wide knowledge of the industry and our systematical approach, we assemble Risk Premia, niche Alphas and Illiquidity Alpha in risk-controlled Absolute Return portfolios, for the most sophisticated international investors: ERAAM Investment Solutions ©

3 main families

70% of measured Alpha comes from Risk Premia

We believe that, accepting lower liquidity, investors can add to Risk Premia returns the remaining Alpha via carefully selected Hedge Funds and Illiquidity Credit Premia.

ERAAM is one of the few assets manager being able to combine those 3 families in dedicated portfolios.

Liquid Alpha family

Risk Premia families

Risk Premia universe

Efficient portfolio

  1. We monitor the full universe of cross-asset Risk Premia providers
  2. We select robust, legit, liquid and high intellectual property funds
  3. We assemble these selected funds, adding low correlation criteria to optimise diversification

ERAAM selects and assembles liquid and cost efficient Risk Premia strategies

Pure Liquid Alpha track-record

Available on request.

Niche Alpha family

Know How

ERAAM has been investing in hedge funds since 1998

 

We achieved robust risk-adjusted performance and weathered various market conditions over the past 20 years

  • No litigation in the 2008 crisis
  • 1st decile performance for dedicated mandate
  • 19 years track-record with Sharpe ratio around 1

First grade sourcing and know how

  • Networking
  • Due diligence expertise accross all strategies
  • Gatekeeper for Calpers for 8 years

Using its in-house risk monitoring technology, ERAAM harvests pure Alpha hedge funds strategies

Investment process

Selection

  • From a 2000 funds investment universe, we narrow it down to 50 investable ones
  • A 6 steps process: quantitative screening and analysis, quality analysis, operational on site due diligence, committee selection and portfolio integration
  • Portfolios typically spread across 20 managers

Assembling and risk monitoring

  • Monthly meetings or calls with invested managers
  • In-depth risk analysis
  • Transparency and consolidation
  • Portfolio risk contribution

Transparency and strategies consolidation allow us to closely monitor portfolio risks

Pure Niche Alpha track-record

Available on request.

Illiquidity Alpha family

The opportunity: a new regulatory environment

Illiquidity Alpha reglementation

We can benefit from the Alpha created by regulatory constraints institutions

Investment process

Due diligence

  • Qualitative due diligence: performance rationales, portfolio line by line analysis, capacity and liquidity strategy risk analysis, fund manager added value, background check with ERAAM network
  • Quantitative due diligence: performance analysis, stress test, peer group analysis, in-house software quantitative and statistical analysis
  • Operational due diligence: operational risks identification to eliminate fraud risks, pricing methods evaluation, power of veto

Investment universe

  • We have developed strong sourcing partnerships which allows us to invest in 3 different formats
  • Direct investment: OTC, opportunistic and very specific operations, ability to react quickly, high performance target (15-20%)
  • Tailor made programs: Tailor-made strategy defined with the partner, sponsoring along the partner, board and/or investment committee member, alignment of interests, medium-high performance target (12%)
  • Open programs: Opportunistic investment, targeted on niche product/sector specialists, alignment of interests and better liquidity, medium-low performance target (8%)

Rich sourcing adapted to various expected performance targets

Pure Illiquidity Alpha track-record

Available on request.

Diversified investment solutions