How to Generate Absolute Returns in Hedge Funds: Combining Strategic & Tactical Alpha – Madison Sixty Capital LLC – 3.10.23

Summary:

Now On Demand

Absolute return investments contribute to consistent compounding of wealth by mitigating the effects of market downturns and providing diversification to traditional 60/40 portfolios. These “absolute returns” are derived from two sources of alpha:

• Strategic alpha that results from allocating to markets and asset classes beyond traditional portfolio constraints.
• Tactical alpha results from dynamically changing those allocations to different asset classes.

Equity Long/Short and Managed Futures hedge funds can deliver these sources of alpha across multiple market cycles. This was clearly demonstrated in 2022, when managed futures hedge funds were a “A Beacon of Green in a Sea of Red” by dynamically investing in currencies, commodities, interest rates, and equities.

Speakers:

Andrew Beer is the Co-Founder of DBi, a New York-based specialist in hedge fund replication. Andrew began his career in hedge funds in 1994 as a portfolio manager for Seth Klarman of the Baupost Group, and later founded successful hedge funds on commodities and relative value arbitrate in the Greater China region. For the past decade and a half, Andrew has focused on how to deliver hedge fund returns with daily liquidity, lower fees, less downside risk and better performance. Today, DBi manages approximately $2.2 billion across eight funds that encompass a US partnership, ETFs, UCITS funds and a vehicle for Japanese investors. DBi is well-known for its research on hedge funds, liquid alternatives, managed futures, and related strategies. Andrew received his MBA from Harvard Business School as a Baker Scholar and BA from Harvard College.

Luis E. Jimenez is the Founder and Managing Member of Madison Sixty Capital LLC. Luis has 25 years of experience in various senior investment management roles. He has continually served as a trusted advisor to public company Boards, insurance company CIOs, ultra-high-net-worth principals, and family offices. Mr. Jimenez has often been called upon to identify opportunistic strategies or non-correlated investments within challenging markets as well as providing financing for acquisitions.

Luis started his career as Senior Analyst and Portfolio Manager at Citigroup and later at Global Hedge Strategies a joint venture between Citigroup and PAAMCO, before leading a customized portfolio solutions and opportunistic Co-investment mandates at OpenArc, Sciens Capital Management, and Fairfield Heathcliff Capital.

Currently, he serves as a senior advisor to Park Ohio Holdings Corporation and on the Board of Directors for Crawford United Corporation. Luis earned his MBA in Finance & Operations Management, B.S. in Business Administration and B.S. in Economics from Case Western Reserve University. He holds Series 7, 63, and 65 licenses.

David A. Anderson is Managing Director and Head of Institutional Distribution at Madison Sixty Capital LLC. Dave has 30+ years of experience in business development, marketing, and sales management, including over a decade at GAM (later UBS) overseeing onshore and offshore intermediary, private and institutional clients. Prior to Madison Sixty Capital, Dave founded LiquidAltFunds LLC and previously he worked at JP Morgan and Kemper Financial Services in a variety of sales, marketing, and sales management roles. He received his B.S. in Marketing from the University of Denver and did graduate work in Marketing at Northwestern University’s Kellogg School of Management. He holds FINRA Series 7 and 63 licenses.